Question 2 North West Consulting Ltd started operating on 1 July 2021 with 12 employees. Three years later, all of those employees were still with the company. O the company hired 15 more people, but by 30 June 2024, only 10 of those employed at the beginning of that year were still employed by North West Ca All employees are entitled to 13 weeks' long-service leave after a conditional period of 10 years of employment with North West Consulting As at 30 June 2024, North West Consulting Ltd estimates the following: the aggregate annual salaries of all employees hired on 1 July 2021 is now $300,000 . the aggregate annual salaries of all current employees hired on 1 July 2023 is now $200,000 . the probability that employees hired on 1 July 2021 will continue to be employed for the duration of the conditional period is 40 per cent . the probability that employees hired on 1 July 2023 will continue to be employed for the duration of the conditional period is 20 per cent. Salaries are expected to increase indefinitely at 1 per cent per annum. The interest rates on high-quality corporate bonds are as follows: 1 July 2023 30 June 2024 4% 6% 5% 8% Corporate bonds maturing in seven years Corporate bonds maturing in eight years Corporate bonds maturing in nine years Corporate bonds maturing in ten years 5% 8% 6% 10% At 30 June 2023, the provision for long-service leave was $3,000. REQUIRED 1. Calculate the total accumulated long-service leave benefit as at 30 June 2024. Please show all your calculations. 2. What amount should be reported for the long-service leave provision as at 30 June 2024 in accordance with AASB 119? Please show 3. Prepare the journal entry for the provision for long-service leave for 30 June 2024 in accordance with AASB 119. HI a
Question 2 North West Consulting Ltd started operating on 1 July 2021 with 12 employees. Three years later, all of those employees were still with the company. O the company hired 15 more people, but by 30 June 2024, only 10 of those employed at the beginning of that year were still employed by North West Ca All employees are entitled to 13 weeks' long-service leave after a conditional period of 10 years of employment with North West Consulting As at 30 June 2024, North West Consulting Ltd estimates the following: the aggregate annual salaries of all employees hired on 1 July 2021 is now $300,000 . the aggregate annual salaries of all current employees hired on 1 July 2023 is now $200,000 . the probability that employees hired on 1 July 2021 will continue to be employed for the duration of the conditional period is 40 per cent . the probability that employees hired on 1 July 2023 will continue to be employed for the duration of the conditional period is 20 per cent. Salaries are expected to increase indefinitely at 1 per cent per annum. The interest rates on high-quality corporate bonds are as follows: 1 July 2023 30 June 2024 4% 6% 5% 8% Corporate bonds maturing in seven years Corporate bonds maturing in eight years Corporate bonds maturing in nine years Corporate bonds maturing in ten years 5% 8% 6% 10% At 30 June 2023, the provision for long-service leave was $3,000. REQUIRED 1. Calculate the total accumulated long-service leave benefit as at 30 June 2024. Please show all your calculations. 2. What amount should be reported for the long-service leave provision as at 30 June 2024 in accordance with AASB 119? Please show 3. Prepare the journal entry for the provision for long-service leave for 30 June 2024 in accordance with AASB 119. HI a
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
6
Transcribed Image Text:Question 2
North West Consulting Ltd started operating on 1 July 2021 with 12 employees. Three years later, all of those employees were still with the company. On
the company hired 15 more people, but by 30 June 2024, only 10 of those employed at the beginning of that year were still employed by North West Con
All employees are entitled to 13 weeks' long-service leave after a conditional period of 10 years of employment with North West Consulting
As at 30 June 2024, North West Consulting Ltd estimates the following:
the aggregate annual salaries of all employees hired on 1 July 2021 is now $300,000
. the aggregate annual salaries of all current employees hired on 1 July 2023 is now $200,000
. the probability that employees hired on 1 July 2021 will continue to be employed for the duration of the conditional period is 40 per cent
. the probability that employees hired on 1 July 2023 will continue to be employed for the duration of the conditional period is 20 per cent.
Salaries are expected to increase indefinitely at 1 per cent per annum.
The interest rates on high-quality corporate bonds are as follows:
1 July 2023
30 June 2024
6%
4%
5%
8%
Corporate bonds maturing in seven years
Corporate bonds maturing in eight years
Corporate bonds maturing in nine years
5%
8%
6%
10%
Corporate bonds maturing in ten years
At 30 June 2023, the provision for long-service leave was $3,000
REQUIRED
1. Calculate the total accumulated long-service leave benefit as at 30 June 2024. Please show all your calculations.
2 What amount should be reported for the long-service leave provision as at 30 June 2024 in accordance with AASB 119? Please show
3. Prepare the journal entry for the provision for long-service leave for 30 June 2024 in accordance with AASB 119.
a
Time here to search
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education