Question: Could i get some help with this question Ella Ltd provides its employees with long service leave (LSL) entitlements of 13 weeks of paid leave

Could i get some help with this question

Could i get some help with this question Ella Ltd provides its

Ella Ltd provides its employees with long service leave (LSL) entitlements of 13 weeks of paid leave for every 10 years of continuous service. As the company has been operating for only 2 years, no employees have become entitled to long service leave. However, the company recognises a provision for long service leave in accordance with AASB 119/IAS 19. The following information is obtained from Ella Lid's payroll records and actuarial reports for the employees at 30 June 2020. Total number of employees 10 Annual salary per employee $50 000 Number of years (unit credit) 2 years Number of years until long service leave is expected to be paid 8 years Probability that long service leave will be taken (proportion of employees expected to stay long enough to become entitled to long service leave) 20% Yield on 8-year high-quality corporate bonds at 30/6/2020 10% Additional information The estimated annual increase in wages is 2% p.a. for the next 10 years, reflecting expected inflation. The provision for long service leave for the employees at 30 June 2019 was $12 000. REQUIRED Provide the numbers for each step and the journal entry in the blanks below to account for Ella Lid's provision for long service leave at 30 June 2020. Round to the nearest $ amount. Step 1: Estimate the number of employees who are expected to become eligible for long service leave: Step 2: Estimate the projected salaries: Step 3: Determine the accumulated benefit: Step 4: Measure the present value of the accumulated benefit: Journal entry: 30/6/2020 Long Service Leave Expense Dr Provision for Long Service Leave Cr

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