Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees eamed vacation pay of $41,000 for the period. The pension plan requires a contribution to the plan administrator equal to 9% of employee salaries. Salaries were $800,000 during the period. Required: Provide the journal entries for (a) the vacation pay and (b) the pension benefit. Refer to the Chart of Accounts for exact wording of account titles.

Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees eamed vacation pay of $41,000 for the period. The pension plan requires a contribution to the plan administrator equal to 9% of employee salaries. Salaries were $800,000 during the period. Required: Provide the journal entries for (a) the vacation pay and (b) the pension benefit. Refer to the Chart of Accounts for exact wording of account titles.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16EA: An employee and employer cost-share pension plan contributions and health insurance premium...

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