Pension Plan EntriesYuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $174,700 for the quarter ended December 31.a. Journalize the entry to record the accrued pension liability on December 31.Dec. 31 fill in the blank e66661fef043ffe_2fill in the blank e66661fef043ffe_3 fill in the blank e66661fef043ffe_5fill in the blank e66661fef043ffe_6Journalize the entry to record the accrued pension liability payment to the funding agent on January 15.Jan. 15 fill in the blank cdac31fd9fc3ffd_2fill in the blank cdac31fd9fc3ffd_3 fill in the blank cdac31fd9fc3ffd_5fill in the blank cdac31fd9fc3ffd_6b. The pension plan where a company pays the employee a fixed annual amount based on a formula is a

Defined Contribution Pension Plan: Generally, employee and employer makes makes contribution to the plan .In Defined Contribution Pension Plan, employer promises to contribution certain amount of money on behalf of employee during working years of employee. however, primary responsibility of contribution lies with employee. Pension of the employee depends on the total contributions and returns on those contributionsDate Particulars Debit Credit Dec-31 Pension Expense $174,700 Unfunded Pension Liability $174,700 (To record quarterly pension cost) Jan-15 Unfunded Pension Liability $174,700 Cash $174,700 (To record the Payment of accrued Pension Liability) b. The pension plan where a company pays the employee a fixed annual amount based on formula is Defined Benefit Plan

Answered: Yuri Co. operates a chain of gift…

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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Pension Plan Entries

Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $174,700 for the quarter ended December 31.

a. Journalize the entry to record the accrued pension liability on December 31.

Dec. 31		fill in the blank e66661fef043ffe_2	fill in the blank e66661fef043ffe_3
		fill in the blank e66661fef043ffe_5	fill in the blank e66661fef043ffe_6

Journalize the entry to record the accrued pension liability payment to the funding agent on January 15.

Jan. 15		fill in the blank cdac31fd9fc3ffd_2	fill in the blank cdac31fd9fc3ffd_3
		fill in the blank cdac31fd9fc3ffd_5	fill in the blank cdac31fd9fc3ffd_6

b. The pension plan where a company pays the employee a fixed annual amount based on a formula is a

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