paid working days of vacation per annum. Employee statistics are as follows: 50 000 Number of...

 

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paid working days of vacation per annum. Employee statistics are as follows: 50 000 Number of employees R100 000 Average annual salary: 2017 10 days Unused leave 31 December 2017 14 days Leave taken in the year ended 31 December 2018 • S1 &S2: on average, 9 earned in 2018, 5 earned in 2017 • $3: all earned in 2018 15 days Leave expected to be taken during the year ended 31 December 2019 • S1 & S2: on average, 12 days earned in 2019, 3 days earned in 2018 • S3: all days earned in 2019 Additional information: 1. No employees left or joined the company in the past 2 years. 2. Salaries increased by 20% from 01 January 2018. 3. Past estimates show that management is able to correctly forecast the number of vacation days that will be used in the following financial year. Required: Determine the leave pay provision, and provide the journal at the 31 December 2018 assuming that: 3.1. Leave accumulates and vests indefinitely (10) 3.2. Leave accumulates for one year after it accrues but is non-vesting (10) paid working days of vacation per annum. Employee statistics are as follows: 50 000 Number of employees R100 000 Average annual salary: 2017 10 days Unused leave 31 December 2017 14 days Leave taken in the year ended 31 December 2018 • S1 &S2: on average, 9 earned in 2018, 5 earned in 2017 • $3: all earned in 2018 15 days Leave expected to be taken during the year ended 31 December 2019 • S1 & S2: on average, 12 days earned in 2019, 3 days earned in 2018 • S3: all days earned in 2019 Additional information: 1. No employees left or joined the company in the past 2 years. 2. Salaries increased by 20% from 01 January 2018. 3. Past estimates show that management is able to correctly forecast the number of vacation days that will be used in the following financial year. Required: Determine the leave pay provision, and provide the journal at the 31 December 2018 assuming that: 3.1. Leave accumulates and vests indefinitely (10) 3.2. Leave accumulates for one year after it accrues but is non-vesting (10)

Answer rating: 100% (QA)

1 Vesting It means the cash is paid on termination or resignation of the employee for unused vacatio... View the full answer