Assume that Yellowgum Ltd raised an annual provision for annual leave for $78,960 and that, by the end of the year, the following annual leave had been taken by staff:

9 staff members had taken their four weeks leave for the year

3 staff members had taken three of their four weeks leave for the year

1 staff member had taken two of their four weeks leave for the year

1 staff member had not taken any leave at all.

Assuming all of the weekly entries to raise the provision were complete, what would the balance of the Provision for Annual Leave account be at this time?

Enter whole dollars only, no dollar

sign, no comma. Round up or down to the nearest whole dollar if required.

Employees of Yellowgum Ltd are also entitled to four weeks of

annual leave per annum, with a 17.5% loading. 

The Annual Leave Provision

carries over from year to year if staff do not take all of their leave, but

there was no leave balance owing at the start of the current year.

Assuming Yellowgum Ltd records annual leave provisions on a weekly basis,

what amount would be recorded each week? 

Enter whole dollars only, no dollar sign, no

comma. Round up or down to the nearest whole dollar if required.

Yellowgum Ltd

has been

operating for five years, and employs 14 staff. The

Each staff member is entitled to two weeks of sick leave per

annum which is non-cumulative. Based on past experience, Yellowgum Ltd expects

all staff to use all of their sick leave entitlements each year.

Assuming

Yellowgum Ltd records sick leave provisions on a weekly basis, what amount

would be recorded each week?

Enter whole dollars only, no dollar sign, no

comma. Round up or down to the nearest whole dollar if required.

Assume the Provision for Warranties had an opening balance of $33,000 credit.

What will the balance of the Provision for Warranties

account

be at the end of the next year if:

24 x product A (cost price $268) 

and 

47 product B (cost price $430) have been replaced under warranty? 

Enter only digits, no dollar sign, no comma.

Ringbark Manufacturing sells several products including products A

and B. Total sales for the year are $150,000 for product A, and $360,000 for

product B. Both products are sold with a 12-month warranty covering parts and

labour against faults.

Based on past experience, 10% of total sales of product A are

claimed under warranty, and 5% of total sales of product B.

Ringbark Manufacturing sells several products including products A

and B. Total sales for the year are $150,000 for product A, and $360,000 for

product B. Both products are sold with a 12-month warranty covering parts and

labour against faults.

Based on past experience, 10% of total sales of product A are

claimed under warranty, and 5% of total sales of product B.

Minutes Ltd produces stopwatches and sells them with a

one-year warranty. The warranty provision account at the start of the period

had a balance of $6,000. During the year warranty expense was recorded for $12,000

based on the current year’s sales. During the same period, warranty claims valued

at $4,000 were fulfilled. What is the closing balance of the provision for

warranties?

Timeless Ltd produces clocks and sells them with a one-year

warranty. The warranty provision account at the start of the period had a balance

of $4,000. During the year warranty expense was recorded for $20,000 based on

the current year’s sales. During the same period, warranty claims valued at

$11,000 were fulfilled. What is the closing balance of the provision for

warranties?

Information about contingent liabilities may be found in a

company’s financial statements in the:

Which of the following is an example of a contingent

liability?