Answer to Question #240139 in Finance for Anisha Radhika Kum

Question

Sala joined the company 7 years ago.

 She is entitled to 13 weeks of long service leave after completing 10 years of service with the company.

 Her current salary is $50,000. Salaries are expected to grow by 2% for the next 5 years.

 Sala is 80% certain that she will not leave the company in the next 5 years.

 High quality bonds with a 5 year term have an interest rate of 6% and high quality bonds with a 3 year term have an interest rate of 4%

Required:

a) Calculate the company’s long service leave liability relating to Sala.

b) Prepare all journal entries relating to long service leave, assuming there is already a balance of $4,000 in the account.

Use an excel sheet to post your answer.

Answer 1

Dear Anisha Radhika Kum, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order