Answer:
a.
Vacation Pay Expense 35,000
Vacation Pay Payable 35,000
Vacation pay accrued for the period.
b.
Pension Expense 201,250
Cash 175,000
Unfunded Pension Liability 26,250
To record pension cost and funding.
PE 11-6B Vacation pay and pension benefits
Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $35,000 for the period. The pension formula calculated a pension cost of $201,250. Only $175,000 was contributed to the pension plan administrator. Provide the journal entry for the (a) vacation pay and (b) pension benefit.
Answer:
a.
Vacation Pay Expense 35,000
Vacation Pay Payable 35,000
Vacation pay accrued for the period.
b.
Pension Expense 201,250
Cash 175,000
Unfunded Pension Liability 26,250
To record pension cost and funding.
Answer:
a.
Vacation Pay Expense 35,000
Vacation Pay Payable 35,000
Vacation pay accrued for the period.
b.
Pension Expense 201,250
Cash 175,000
Unfunded Pension Liability 26,250
To record pension cost and funding.