Bear Island Ltd has a weekly payroll of $300 000. The employees receive entitlements to two weeks’ sick leave per year. The sick-leave entitlements are classified as non-vesting. Past experience, and experience within the industry, suggest that 60 percent of employees will use their full two weeks’ entitlement each year; 20 percent of employees will take one week’s sick leave each year, and 10 percent of employees will take one day’s sick leave each year.

Calculate the expected annual sick-leave expense for Bear Island Ltd (on the basis of average salaries).

1. Provide the journal entries necessary to recognize the sick-leave entitlement expense as it accrues.

Answer rating: 100% (QA)

a Calculate the expected annual sick leave expense for Bear Island Ltd on the basis ... View the full answer