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14 October, 03:45

Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $40,000 for the period. The pension formula calculated a pension cost of $222,750. Only $185,000 was contributed to the pension plan administrator.

Required:

Journalize the entry to record the:

a. vacation pay

b. pension benefit.

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Answers (1)
  1. 14 October, 07:28
    0
    A.

    Dr Vacation pay expenses $40,000

    Cr Vacation pay payable $40,000

    B.

    Dr Pension expenses $222,750

    Cr Cash $185,000

    Cr Unfunded pension liability $37,750

    Explanation:

    Regling Company Journal entries

    A.

    Dr Vacation pay expenses $40,000

    Cr Vacation pay payable $40,000

    B.

    Dr Pension expenses $222,750

    Cr Cash $185,000

    Cr Unfunded Pension liability $37,750
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