PROBLEM 2: Defined contribution planXander Corporation was incorporated on January 1, 2020. It has a defined contribution plan that coversall existing employees. The pension plan requires Xander to contribute 8% of annual employees' salariesto the retirement plan every year. The payroll record for 2020 shows annual salaries of P5,000,000.During 2020, Xander contributed P300,000 to the pension plan.During 2021, the pension plan was amended. Xander is required to contribute 10% of the annualemployees' salaries to the pension plan every year. The payroll record for 2021 shows annual salaries ofP5,500,000. Xander contributed P700,000 to the pension plan during the same year.Required:1. Prepare all the journal entries for 2020 and 2021.2. Determine the carrying amount of prepaid/accrued pension cost as of December 31, 2020 andDecember 31, 2021.

Contribution in the year 2020 Annual Salary 50,00,000 Contribution in % to be made…

Answered: Required: 1. Prepare all the journal…

Required: 1. Prepare all the journal entries for 2020 and 2021. 2. Determine the carrying amount of prepaid/accrued pension cost as of December 31, 2020 and December 31, 2021.

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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