Tom works for Hot Chicken Ltd. He receives an annual salary of $80 000. He is also entitled to four weeks’ annual leave and to a leave loading of 17.5 per cent. Required: What will be the cost of annual leave to his employer? What amount will be kept aside for covering this cost on weekly basis? Provide the weekly journal entry at the end of each week.Provide journal entry if Tom takes three (3) weeks of annual leave.

Cost of Annual Leave: It is appropriate for every employee to be compensated for the time they have…

Answered: Tom works for Hot Chicken Ltd. He…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tom works for Hot Chicken Ltd. He receives an annual salary of $80 000. He is also entitled to four weeks’ annual leave and to a leave loading of 17.5 per cent.

Required:

What will be the cost of annual leave to his employer? What amount will be kept aside for covering this cost on weekly basis? Provide the weekly journal entry at the end of each week.
Provide journal entry if Tom takes three (3) weeks of annual leave.

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