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Cerrena [4.2K]
3 years ago
11

Vacation Pay and Pension Benefits Regling Company provides its employees vacation benefits and a defined benefit pension plan. E

mployees 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. (a) Provide the journal entry for the vacation pay. If an amount box does not require an entry, leave it blank. (b) Provide the journal entry for the pension benefit. If an amount box does not require an entry, leave it blank.
Business
1 answer:
fenix001 [56]3 years ago
8 0

Answer and Explanation:

According to the scenario, journal entry for the given data are as follows:

(a).

Vacation Pay Expenses A/c Dr. $40,000  

To Vacation Pay Payable A/c. $40,000

(Being vacation pay for the period is recorded)

(b).

Pension Expenses A/c Dr. $222,750  

To Cash A/c. $185,000

To Unfunded Pension Liabilities A/c $37,750     ( $225,750 - $185,000)

( Being pension benefit for the period is recorded)

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8 0
1 year ago
The preferred debt-to-income ratio is usually: A. 28 percent B. 36 percent C. 40 percent D. 50 percent
krek1111 [17]

the preferred debt to income ratio is usually B 36%

4 0
3 years ago
community hospital in a rual community operates the ambulance service. the hospital purchases a new ambulance for $150,000. they
lisov135 [29]

Answer:

$150,000×20,000=3.000.000.000

Explanation:

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5 0
3 years ago
Fitzgerald Tech owns 20,000 shares of Buchanan Industries, which it purchased for $450,000 in 2016. On March 6, 2020, Fitzgerald
cupoosta [38]

Answer:

The debit to the retained earning should be $750,000 for this transaction because that is the market value of the asset to be distributed as dividend.

Explanation:

Property dividend is a form of dividend payout that involves distribution of company`s assets to equity holders as a form of return. These assets can be inventory, marketable securities or investment in a subsidiary.

For this distribution to be formal, it must be approved by the board of directors of the company. After approved and declared, the accounting entries can now be passed.

The accounting entries needed are:

Debit: Retained Earnings with the amount of the asset distributed.

Credit: Dividend Payable with the amount of the asset distributed.

It is important to note that  the market value of asset to be distributed should be considered i.e the market value of the asset must be recognized in the book. The difference in book value and market value of the investment will be recognized in respective asset ledger account prior transfer to retained earnings.So that the market value of the investment is recognized on the debit side of retained earnings

In the case of Fitzgerald, $750,000 will be debited to retained earnings since it is the market value of the asset to be distributed.

8 0
3 years ago
At the end of the year, a company has a $1,200 debit balance in Manufacturing Overhead. As a result, the company:a.makes an adju
Nonamiya [84]

Answer:

d. makes an adjusting journal entry by debiting Cost of Goods Sold for $1,200 and crediting Manufacturing Overhead for $1,200.

Explanation:

The debit balance of $1,200 in the Manufacturing Overhead account represents under-applied overhead.  To ensure that the Cost of Goods Sold is accurate, the debit balance is debited to the Cost of Goods Sold while the corresponding credit goes to the Manufacturing Overhead account.

5 0
3 years ago
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