Determine the appropriate pension account

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Question - Shining Light Corporation provides a defined contribution pension plan for its employees. The plan requires the company to deduct 5% of each employee's gross pay for each payroll period as the employee contribution. The company then contributes 7% of the gross pay for the employer contribution. Both amounts are remitted to the pension trustee within 10 days of the end of each month for the previous month's payrolls. At November 30, 2020, Shining Light Corporation reported $29,300 of combined withheld and matched contributions owing to the trustee. During December, Shining Light reported gross salaries and wages expense of $276,100.

Required -

a. Prepare the entry to record the December payment to the plan trustee.

b. What amount of pension expense will the company report for December 2020?

c. Determine the appropriate pension account and its balance to be reported on the December 31, 2020 SFP assuming all prior months' remittances were made as required.

Reference no: EM132946853

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