Question

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 Lopez's 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.

Answer 1