Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $40,000 for the period. The pension plan requires a contribution to the plan administrator equal to 10% of employee salaries. Salaries were $500,000 during the period.a. Provide the journal entry for the vacation pay. If an amount box does not require an entry, leave it blank. Vacation Pay Expense fill in the blank 5e6293fdafbafdb_2fill in the blank 5e6293fdafbafdb_3 Vacation Pay Payable fill in the blank 5e6293fdafbafdb_5fill in the blank 5e6293fdafbafdb_6b. Provide the journal entry for the pension benefit. If an amount box does not require an entry, leave it blank. Pension Expense fill in the blank 30546afde038fc5_2fill in the blank 30546afde038fc5_3 Cash fill in the blank 30546afde038fc5_5fill in the blank 30546afde038fc5_6

Solution:- a) Preparation of the journal entry for the vacation pay as follows under:-

Answered: Martin Services Company provides its…

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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Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $40,000 for the period. The pension plan requires a contribution to the plan administrator equal to 10% of employee salaries. Salaries were $500,000 during the period.

a. Provide the journal entry for the vacation pay. If an amount box does not require an entry, leave it blank.

	Vacation Pay Expense	fill in the blank 5e6293fdafbafdb_2	fill in the blank 5e6293fdafbafdb_3
	Vacation Pay Payable	fill in the blank 5e6293fdafbafdb_5	fill in the blank 5e6293fdafbafdb_6

b. Provide the journal entry for the pension benefit. If an amount box does not require an entry, leave it blank.

	Pension Expense	fill in the blank 30546afde038fc5_2	fill in the blank 30546afde038fc5_3
	Cash	fill in the blank 30546afde038fc5_5	fill in the blank 30546afde038fc5_6

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