Question

The pension plan for gl inc. requires a contribution to the plan administrator equal to 11% of employee salaries. salaries were $575,600 for the period. the journal entry to record the pension benefit would include

Answer 1

The journal entry that the pension benefit would include credit to cash for $63,316. We get the $63,316 by multiplying the 11% of employee salary to $575,600 salaries for the period. So the journal entry would include in the pension benefit is credit to cash for $63,316.