Answer:
A. Dr Vacation pay Expenses $15,700
Cr Vacation pay payable $15,700
B. Dr Pension Expense $13,440
Cr Cash $13,440
Explanation:
a. Preparation of the journal entry to record the vacation pay
Dr Vacation pay Expenses $15,700
Cr Vacation pay payable $15,700
(Being to record Vacation pay accrued for the period )
b. Preparation of the Journal entry to record pension benefit
Dr Pension Expense $13,440
Cr Cash $13,440
(8%*$168,000)
(Being to record pension Contribution)
