n the year 2021, Qiqi Company provides benefits to employees through a defined contribution plan. The plan has the following details: • 10% of gross payroll is to be contributed to the funding agency • 5% annual sales exceeding P12,000,000. • gross payroll of the company was P10,500,000 • total sales amounted to P35,000,000. • Friday contributed P3,200,000 to the employees’ pension fund for the year. Requirements: 1. Provide the journal entries for the year 2021. 2. What amount of Prepaid /Accrued benefit expense will be recognized at the end o
n the year 2021, Qiqi Company provides benefits to employees through a defined contribution plan. The plan has the following details: • 10% of gross payroll is to be contributed to the funding agency • 5% annual sales exceeding P12,000,000. • gross payroll of the company was P10,500,000 • total sales amounted to P35,000,000. • Friday contributed P3,200,000 to the employees’ pension fund for the year. Requirements: 1. Provide the journal entries for the year 2021. 2. What amount of Prepaid /Accrued benefit expense will be recognized at the end o
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In the year 2021, Qiqi Company provides benefits to employees through a defined contribution plan.
The plan has the following details:
• 10% of gross payroll is to be contributed to the funding agency
• 5% annual sales exceeding P12,000,000.
• gross payroll of the company was P10,500,000
• total sales amounted to P35,000,000.
• Friday contributed P3,200,000 to the employees’ pension fund for the year.
Requirements:
1. Provide the
2. What amount of Prepaid /Accrued benefit expense will be recognized at the end of 2021?
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