10. Porgy Co.'s retirement plan requires a P250,000 annualcontribution to a fund held by a third party trustee. The fundis legally separate from Porgy Co. and is available solely forthe payment of the retirement benefits of Porgy's employees.At the beginning 20x1, the fund balance is P2,800,000. In itsDecember 31, 20x0 and December 31, 20x1 statements offinancial position, Porgy reported accrued payable forretirement benefits of P30,000 and P80,000, respectively.Payments to retiring employees during 20x1 totaled P750,000.How much is the retirement benefits expense in 20x1?a. 250,000b. 700,000c. 750,000d. 800,000

A retirement benefit plan involves annual contributions form the employer to the retirement fund.…

Answered: 6 tmpioyees during 20x1 totaled…

6 tmpioyees during 20x1 totaled P750,000.- How much is the retirement benefits expense in 20x1? a. 250,000 b. 700,000 c. 750,000 d. 800,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.

Question

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10. Porgy Co.'s retirement plan requires a P250,000 annual
contribution to a fund held by a third party trustee. The fund
is legally separate from Porgy Co. and is available solely for
the payment of the retirement benefits of Porgy's employees.
At the beginning 20x1, the fund balance is P2,800,000. In its
December 31, 20x0 and December 31, 20x1 statements of
financial position, Porgy reported accrued payable for
retirement benefits of P30,000 and P80,000, respectively.
Payments to retiring employees during 20x1 totaled P750,000.
How much is the retirement benefits expense in 20x1?
a. 250,000
b. 700,000
c. 750,000
d. 800,000

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