165.Martin Services Company provides its employees vacation benefits and a defined contribution pensionplan. Employees earned vacation pay of $39,500 for the period. The pension plan requires a contribution to theplan administrator equal to 9% of employee salaries. Salaries were $750,000 during the period. Provide the journalentries for (a) the vacation pay and (b) the pension benefit.
166.Below are two independent sets of transactions for Welcott Company:
(a)Welcott provides its employees with varying amounts of vacation per year, depending on the length ofemployment. The estimated amount of the current year’s vacation pay is $78,000. Journalize the adjusting entryrequired on January 31, the end of the first month of the year, to record the accrued vacation pay.
(b)Welcott maintains a defined contribution pension plan for its employees. The plan requires quarterlyinstallments to be paid to the funding agent, Northern Trust, by the fifteenth of the month following the end of eachquarter. Assuming that the pension cost is $119,600 for the quarter ended December 31, journalize entries torecord (1) the accrued pension liability on December 31 and (2) the payment to the funding agent on January 15.
167.Journalize the following transactions for Riley Corporation:
Dec. 31
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The accrued product warranty expense for the year is estimated to be 2.5% of sales. Sales for the year totaled $8,850,000.
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31
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The accrued vacation pay for the year is estimated to be $75,000.
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31
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Paid First Insurance Co. $55,000 as fund trustee for the pension plan. The annual pension cost is $87,000.
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