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Point 1: An entity provides its employees six paid vacation leaves and two paid sick leaves per year. Unused vacation leaves cannot be carried over to subsequent years and are not monetized if not taken. Unused sick leaves can be carried over to subsequent years and are monetized when an employee retires or leaves the company before retirement.
Point 2: During the year, the entity has 20 employees, each currently earning a rate of 500 per day. A total of 48 days of vacation leaves and 14 days of sick leaves were taken during the year. The entity expexts a 3% increasebin thr pay rate of the employees in the following year.
Requirement:
Question 1: Compute for the accruee liablity for compensated absences at year-end.
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