Ask Question
20 July, 06:07

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.

+5
Answers (1)
  1. 20 July, 09:24
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $40,000 for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers