Chapter K, Problem 4E

1)

To determine

Salaries and wages payable

Salaries and wages payable is a payment made to an employee for completion of work allocated by the company. Gross pay is evaluated by using normal hours worked by the employee with wages rate.

Vacation Pay Liability

Vacation pay is an estimated cost of the company which should be allocated over the entire year.

Pension plan

Pension plan is an agreement between the employer and employee. After the retirement of an employee an employer provides benefits is called as pension plan.

To prepare: The journal entry to record vacation benefits expense for the period as on March 31.

2)

To determine

To prepare: The journal entry to record pension expense for the period as on March 31.