The employees of XYZ Ltd are entitled to 10 weeks’ long-service leave (LSL) after 10 years of continuous service with the company. The pre-conditional period is 5 years. The following information has been compiled for calculating the liability for long service leave as at 30 June 2021.
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The employees of XYZ Ltd are entitled to 10 weeks’ long-service leave (LSL) after 10 years of continuous service with the company. The pre-conditional period is 5 years. The following information has been compiled for calculating the liability for long service leave as at 30 June 2021.
Number of employees as at 30 June 2021 |
Aggregate projected salary when LSL vests |
Aggregate annual salaries for 2020-2021 |
Years of service as at 30 June 2021 |
The expected Government bond rate at the time when LSL vests |
Probability that LSL will vest |
22 |
$950,000 |
$560,000 |
4 |
7% |
24% |
28 |
$350,000 |
$250,000 |
6 |
4% |
73% |
24 |
$190,000 |
$180,000 |
9 |
3% |
100% |
The total long service leave provision reported in the balance sheet as at 30 June 2020 was $59,982.
Assume that no LSL was taken during the year.
Required:
Prepare the general
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- The employees of XYZ Ltd are entitled to 10 weeks’ long-service leave (LSL) after 10 years of continuous service with the company. The pre-conditional period is 5 years. The following information has been compiled for calculating the liability for long service leave as at 30 June 2021. Number of employees as at 30 June 2021 Aggregate projected salary when LSL vests Aggregate annual salaries for 2020-2021 Years of service as at 30 June 2021 The expected Government bond rate at the time when LSL vests Probability that LSL will vest 22 $950,000 $560,000 4 7% 24% 28 $350,000 $250,000 6 4% 73% 24 $190,000 $180,000 9 3% 100% The total long service leave provision reported in the balance sheet as at 30 June 2020 was $59,982. Assume that no LSL was taken during the year. Required: Based on the information provided above calculate the LSL Entitlement that needs to be booked as at 30 June 2021.Under the assumptlon: Unused vacation leaves vest (accumulating and vesting), What Is the balance of llablity for compensated absences for the year ended December 31, 20207 ABC Corp allows each employee to earn 15 days of paid vacation leave per year. Unused vacation leave can be carried up to two years from the year there were earned, thereafler it shall expire. The company has 50 employees (assumed have been employed throughout 2019 and 2020) with an average salary ofP900 per day. Salary rates increased by 10% in 2020. According to past experience, 75% of allowed leaves to be carried-forward are ultimately exercised by the employees. Total leave vacation taken by employces during 2019 and 2020 were 400 days and 480 days, respectively. Your answerUnder vacatlon leave cannot be carrled over next year (non-accumulating), What amount should be reported as vacation pay expense In 2019? * ABC Corp allows each employee to earn 15 days of paid vacation leave per year. Unused vacation leave can be carried up to two years from the year there were earned, thereafter it shall expire. The company has 50 employees (assumed have been employed throughout 2019 and 2020) with an average salary of P900 per day. Salary rates increased by 10% in 2020. According to past experience, 75% of allowed leaves to be carried-forward are ultimately exercised by the employees. Total leave vacation taken by employees during 2019 and 2020 were 400 days and 480 days, respectively. Your answer
- Prepare journal entries to record the following transaction: Ulta Inc. allows each employee to earn 15 paid vacation days each year with full pay. Unused vacation time can be carried over to the next year. By the end of 2020, three employees carried over to 2021 a total of 20 vacation days, which is represented 2020 salary of $6,000J Company’s employees earn vacation time at the rate of two hours per 40-hour work period. The vacation pay vests immediately, meaning an employee is entitled to the pay even if employment terminates. During 2020, total wages paid to employees equaled P8,260,000 including P180,000 for vacations actually taken in 2020 but not including vacations related to 2020 that will be taken in 2021. All vacations earned before 2020 were taken before January 1, 2020. No accrual entries have been made for the vacations. What amount should be reported as vacation pay liability on December 31, 2020?Under the assumptlon: Unused vacatlon leaves do not vest (accumulating and non-vesting), What amount should be reported as vacation pay expense in 2019? ABC Corp allows each employee to earn 15 days of paid vacation leave per year. Unused vacation leave can be carried up to two years from the year there were earned, thereafter it shall expire. The company has 50 employees (assumed have been employed throughout 2019 and 2020) with an average salary of P900 per day. Salary rates increased by 10% in 2020. According to past experience, 75% of allowed leaves to be carried-forward are ultimately exercised by the employees. Total leave vacation taken by employees during 2019 and 2020 were 400 days and 480 days, respectively. Your answer
- On August 31, 2016, ABC Co offered an early retirement package to employees who have rendered at least 20 years of service to the company. The termination package consisted of the following: Lump-sum payment based on December 31 2016 monthly salary level times the number of years in service. Periodic future annual payments based on 50% of December 31, 2016, monthly salary level to be received every December 31 starting on December 31, 2018, and end in the year prior to the commencement of the regular pension, which is on the 30th year from the employment of the employee. A complimentary watch with an estimated fair value of 85,000 as of August 31, 2016, subject to availability of its cash equivalent, will be given to employees with at least 25 years of service in the company. Medical benefits package costing currently at 15,000 and expected to increase by 10% every year. The medical coverage will end on the 30th year from the employment of the employee, which is the commencement of…Ruhl Company grants all employees two weeks' paid vacation for each full year of employment, up to six weeks. Unused vacation time can be accumulated and carried forward to succeeding years and will be accrued and paid at the salaries in effect when vacations are taken or when employment is terminated. There was no employee turnover in 2020. Additional information relating to the year ended December 31, 2020, is: Lability for accumulated vacations on January 1, 2020 Pre-2020 accrued vacations taken from January 1, 2020 to September 30, 2020 (the authorized period for vacations) 30,000 Vacations earned for work in 2020 (adjusted to current rates) 40.000 $50,000 Ruhl granted a 10% salary increase to all employees on October 1, 2020, its annual salary-increase date. For the year ended December 31, 2020, Ruhl should report vacation pay expense of Select one: a. $42,000 b. $60,000 C. 570,000 d. $45,000A director of Company A shall receive a retirement benefit of 20% of final salary per annum for a contractual period of 3 years. The anticipated salary is P1,000,000 for 2020, P1,200,000 for 2021 and P1,500,000 for 2022. The discount rate is 10%. Compute for the ff: 1)Current service cost in 2020, 2021, and 2022 2)Interest expense in 2020, 2021, and 2022 3)PBO, Dec. 31,2020, Dec. 31,2021, and Dec. 31,2022
- On April 30, 2019 the Triple Safety Agency received an advance payment of P540,000 for a one-year security contract covering the period June 01 to May 31, 2020. The Company is using the calendar year reporting period. How much is the service income to be reported on December 31, 2019?ABC Company grants all employees 2 weeks of paid vacation for each full year of employment. Unused vacation time can be accumulated and carried forward to succeeding years, and will be paid at the salaries in effect when vacations are taken or when employment is terminated. During 2020, there was no employee turnover. ABC granted a 10% across the board salary increase to all employees on October 1,2020, its annual salary increase date. Information relating to the year ended December 31,2020 follows: Liability for compensated absences, January 1 P 50,000 Accrued vacation taken from 1/1/20 to 9/30/20 (pre-2020 accruals) 40,000 Vacations earned for work in 2020, adjusted to current rates 40,000 How much is the vacation pay expense for the year 2020? What amount is reported as liability for vacation pay at ABC Company's December 31,2020 statement of financial position?ABC Company grants all employees 2 weeks of paid vacation for each full year of employment. Unused vacation time can be accumulated and carried forward to succeeding years, and will be paid at the salaries in effect when vacations are taken or when employment is terminated. During 2020, there was no employee turnover. ABC granted a 10% across the board salary increase to all employees on October 1,2020, its annual salary increase date. Information relating to the year ended December 31,2020 follows: Liability for compensated absences, January 1 P 50,000 Accrued vacation taken from 1/1/20 to 9/30/20 (pre-2020 accruals) 40,000 Vacations earned for work in 2020, adjusted to current rates 40,000 1. What amount is reported as liability for vacation pay at ABC Company's December 31,2020 statement of financial position?
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