An entity has 100 employees, who are each entitled to five (5) working days of paid sick leave for each year. Unused sick leave may be carried forward for one calendar year. Sick leave is taken first out of the current year's entitlement and then out of any balance brought forward from the previous year (a LIFO basis). At December 30, 20x1, the average unused entitlement is two days per employee. The entity expects, based on past experience which is expected to continue, that 92 employees will take no more than five days of paid sick leave in 20x2 and that the remaining 8 employees will take an average of six and a half days each. The average salary per day, per employee in 20xl is P2,000 and it is not expected to change in 20x2. How much is the accrued salaries as of December 31, 20x1?
An entity has 100 employees, who are each entitled to five (5) working days of paid sick leave for each year. Unused sick leave may be carried forward for one calendar year. Sick leave is taken first out of the current year's entitlement and then out of any balance brought forward from the previous year (a LIFO basis). At December 30, 20x1, the average unused entitlement is two days per employee. The entity expects, based on past experience which is expected to continue, that 92 employees will take no more than five days of paid sick leave in 20x2 and that the remaining 8 employees will take an average of six and a half days each. The average salary per day, per employee in 20xl is P2,000 and it is not expected to change in 20x2. How much is the accrued salaries as of December 31, 20x1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:An entity has 100 employees, who are each entitled to five (5) working days of paid sick leave for each
year. Unused sick leave may be carried forward for one calendar year. Sick leave is taken first out of the
current year's entitlement and then out of any balance brought forward from the previous year (a LIFO
basis). At December 30, 20x1, the average unused entitlement is two days per employee. The entity
expects, based on past experience which is expected to continue, that 92 employees will take no more than
five days of paid sick leave in 20x2 and that the remaining 8 employees will take an average of six and a
half days each. The average salary per day, per employee in 20xi is P2,000 and it is not expected to
change in 20x2. How much is the accrued salaries as of December 31, 20x1?
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