Sonic Ltd provides 4 weeks (20 days) of accumulating vested annual leave for each year of service. The company policy is that annual leave must be taken within 6 months of the end of the period in which it accrues. Annual leave is paid at the base salary rate (which excludes commissions, bonuses and overtime). A 17.5% loading is applied to annual leave payments. The following summary data is derived from Sonic Ltd.’s payroll records for the year ended 30 June 2020. The amounts shown are applicable at 30 June 2020. Employee category Base pay/day $ Annual leave Balance 1 July 2019 (days) Accumulated during year (days) Taken during year (days) Executives 500 260 220 260 Consultants 350 300 540 600 Managers 400 230 330 360 Admin staff 250 240 230 250 Additional information After leave taken during the year had been recorded, Sonic Ltd.’s trial balance revealed that the provision for annual leave had a credit balance of $64,125 at 30 June 2020. Required Calculate the annual leave expense at 30 June 2020 by completing the following table. Prepare journal the entry to account for the annual leave expense at 30 June 2020.
Sonic Ltd provides 4 weeks (20 days) of accumulating vested annual leave for each year of service. The company policy is that annual leave must be taken within 6 months of the end of the period in which it accrues. Annual leave is paid at the base salary rate (which excludes commissions, bonuses and overtime). A 17.5% loading is applied to annual leave payments.
The following summary data is derived from Sonic Ltd.’s payroll records for the year ended 30 June 2020. The amounts shown are applicable at 30 June 2020.
|
Employee category |
Base pay/day |
Annual leave |
||
|
Balance |
Accumulated during year (days) |
Taken during year (days) |
||
|
Executives |
500 |
260 |
220 |
260 |
|
Consultants |
350 |
300 |
540 |
600 |
|
Managers |
400 |
230 |
330 |
360 |
|
Admin staff |
250 |
240 |
230 |
250 |
Additional information
After leave taken during the year had been recorded, Sonic Ltd.’s
Required
- Calculate the annual leave expense at 30 June 2020 by completing the following table.
- Prepare
journal the entry to account for the annual leave expense at 30 June 2020.
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