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204por1.pdf 1 Feb 2359 ACC204 assi X ⓘ file:///C/会计补课/E/assignment/1%20Feb%202359%20ACC204%20assignment%20questions.pd Question 4 (8 marks) Jerry Lopez works for Lightning Bolt Ltd. His annual salary is $100 000 and he is paid weekly. As part of his employment agreement, he is entitled to four weeks annual leave each year. He receives a leave loading of 17.5 per cent. REQUIRED (a) Provide the weekly journal entries to record the recognition of Jerry Lopezs annual leave entitlements (b) Provide the appropriate journal entries, assuming that Jerry Lopez takes two weeks annual leave after being employed for one year and assuming that the tax deducted from the payment for the two weeks is $1200 64%) 38e,

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Solution (a) Particulars Debi Credit Annual Leave Expenses Dr Provision for annual leave |Cr (Being annual leave obligation recorded for Lopez) Weekly entry 174 174 Working Cost of Annual Leave $100000 x 4/52 x 1.175 $ 9,038.00 Week Obligation 9038/52 174.00

Solution (b) Year End Provision for annual leave Dr PAYG tax payable Cash at bank (Being two weeks annual leave paid to Lopez (9038/2)) 4519 Cr. Cr. 1200 3319 Annual Leave Expenses D Provision for annual leave |Cr (Being annual leave obligation recorded for Lopez) Weekly entry 174 174 Year End PAYG tax payable Cash at bank (Being tax paid to govt.) Dr. 1200 1200 Cr.

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