Sotherlin Inc. has a defined contribution plan. It has agreed to pay $230,000 now at the end of 20X4 and another payment of $145,000 at the end of 20X6 for employees' services for 20X4. The current interest rate is 4%. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: Prepare the journal entry for the pension expense for 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.)

Sotherlin Inc. has a defined contribution plan. It has agreed to pay $230,000 now at the end of 20X4 and another payment of $145,000 at the end of 20X6 for employees' services for 20X4. The current interest rate is 4%. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: Prepare the journal entry for the pension expense for 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.)

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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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

TR19-1 Defined Contribution Plan (LO 19-2)
Sotherlin Inc. has a defined contribution plan. It has agreed to pay $230,000 now at the end of 20X4 and another payment of
$145,000 at the end of 20X6 for employees' services for 20X4. The current interest rate is 4%.
(PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.)
Required:
Prepare the journal entry for the pension expense for 20X4. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field. Round your answers to nearest whole dollar.)
View transaction list
Journal entry worksheet
1
Record the pension expense.
#
Note: Enter debits before credits.
Transaction
1
General Journal
Debit
Credit
7
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Step 1: Introduction to journal entries:

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