Question

Calculator Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees eaned vacation pay of $49,000 for the period. The pension plan requires a contribution to the plan administrator equal to 5% of employee salaries. Salanes were $800,000 during the period a. Provide the journal entry for the vacation pay b. Provide the journal entry for the pension benefit.

Answer 1

Answer:

Event	Account Title and explanation	Debit $	Credit $
A	Vacation and Holidays expenses	49000
	vacation and Holidays payable		49000
	(To record the Vacation pay)
B	Pension Expense (800,000*5%)	40000
	Pension Liability		40000
	(To record entry for pension Benefit)