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Question - 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.
Under the Lay-by sales conditions customers pay a non-refundable deposit of 10% and agree to pay off the balance within 12 months. The goods are taken from the store's inventory and set aside at the time the deposit is made.
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In a troubled debt restructuring in which the debt is continued with modified terms, a gain should be recognized at the date of restructure, but no interest expense should be recognized over the remaining life of the debt,
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