Question

Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $42,000 for the period. The pension plan requires a contribution to the plan administrator equal to 10% of employee salaries. Salaries were $500,000 during the period. Provide the journal entries for (a) the vacation pay and (b) the pension benefit.

Provide journal entry for the vacation pay on December 31.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Provide journal entry for the pension benefit on December 31. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Answer 1

solution's... . Journal Entries S.No Date DESCRIPTION POST. REF: Debitl$) Greditus) - į Dec 31 - vacation pay Expense $42,000 vacation pay payable $42,000 (to record vacation pay on December 31) 2 Dee si pension Expense $50,000 $50,000 cash (to record pension benefit on pecembey 3) Explanation, spension Expense - salaries during the period X 10% = $500,000 4101. > $50,000

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