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 2019, the fund balance is P2,800,000. In its December 31, 2018 and December 31, 2019 statements of financial position, Porgy reported accrued payable for retirement benefits of P30,000 and P80,000, respectively. Payments to retiring employees during 2019 totaled P750,000. How much is the retirement benefits expense in 2019?250,000 b. 700,000 c. 750,000 d. 800,000

Retirement benefits include: Pension Gratuity General Provident Fund and Incentives Leave…

Answered: Porgy Co.’s retirement plan requires a…

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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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 2019, the fund balance is P2,800,000. In its December 31, 2018 and December 31, 2019 statements of financial position, Porgy reported accrued payable for retirement benefits of P30,000 and P80,000, respectively. Payments to retiring employees during 2019 totaled P750,000. How much is the retirement benefits expense in 2019?

250,000 b. 700,000 c. 750,000 d. 800,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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