Defined Contribution Plan: For this plan, payments are made to the plan in January for the prior year. Aylmer contributes to this plan, on behalf of the qualified employees. The employees do not contribute. A payment will be made in January 2021 for all of 2020 defined contribution pension related expenses. Remittances are only required to be made annually as is the corresponding accrual. The entry for accruing the pension expense for 2020 is to be made in December 2020. Please see the following info, perform any required calculations, and create journal entries Employees participating in the Defined-Contribution Plan:
Defined Contribution Plan: For this plan, payments are made to the plan in January for the prior year. Aylmer contributes to this plan, on behalf of the qualified employees. The employees do not contribute. A payment will be made in January 2021 for all of 2020 defined contribution pension related expenses. Remittances are only required to be made annually as is the corresponding accrual. The entry for accruing the pension expense for 2020 is to be made in December 2020. Please see the following info, perform any required calculations, and create journal entries Employees participating in the Defined-Contribution Plan:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Aylmer has the following pension plans for employees:
Defined Contribution Plan: For this plan, payments are made to the plan in January for the prior year. Aylmer contributes to this plan, on behalf of the qualified employees. The employees do not contribute. A payment will be made in January 2021 for all of 2020 defined contribution pension related expenses. Remittances are only required to be made annually as is the corresponding accrual. The entry for accruing the pension expense for 2020 is to be made in December 2020.
Please see the following info, perform any required calculations, and create
| Employees participating in the Defined-Contribution Plan: | |||||
| % of salary contributed | |||||
| Annual Salary | on behalf of employees | Expense | |||
| Brian Dennis | President | $ 135,200.00 | 5% | ||
| Jane Ferris | Controller | $ 93,600.00 | 4% | ||
| Lin Wang | Sales | $ 78,000.00 | 4% | ||
| Hannah Carter | Sales | $ 78,000.00 | 4% | ||
| Jessica Lampman | Supervisor | $ 62,400.00 | 4% | ||
| Larry Jones | Supervisor | $ 62,400.00 | 4% | ||
| Amy Fanshawe-Grad | Accountant | $ 39,000.00 | 3% | ||
| Note - employees do not contribute, there is no deduction from their pay cheques. |
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