Determine the appropriate pension account

Assignment Help Accounting Basics
Reference no: EM133037548

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.

a. What is 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 needed.

Reference no: EM133037548

Questions Cloud

Develop risk management plan : a) List the steps you will follow to develop risk management plan?
Development of new generation products : The challenging tobacco marketing environment has resulted in the recent development of 'new generation products, new market segments, and possible restructurin
Global compensation and benefits strategy : Your firm is a multinational consumer electronics organization which has five (5) profitable subsidiaries in Taiwan. Due to pandemic
Formulate a linear programming model : A company manufactures two types of boxes, corrugated and ordinary cartons. The boxes undergo two major processes: cutting and pinning operations.
Determine the appropriate pension account : 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 needed
Discuss distinctive competencies : Identify and briefly discuss FOUR (4) distinctive competencies and how the company can use the distinctive competencies to its advantage in the market.
What the tax consequences of the distribution to Nicholson : Nola assumed a liability of $25,000 attached to the land. What the tax consequences of the distribution to Nicholson in 20X3
Describe the essential characteristics of learning leaders : Describe the essential characteristics of learning leaders. Name a famous individual or someone you know who exemplifies this description and explain why.
Describe the rights of consumers : Identify and describe the rights of consumers and an existing real-world example of false advertisement through research.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the journal entries to record the transactions

The petty cash fund was replenished on May 10. The balance in the fund was $12. Prepare the journal entries to record the transactions related to petty cash

  The cost per equivalent units of direct materials and

the cost per equivalent units of direct materials and conversion in the bottling department of beverages on jolt

  Montana is a partnership with two partners

Montana Company was started on January 1, 2013, when it acquired $50,000 cash from the owners. During 2013, the company earned cash revenues of $25,000 and incurred cash expenses of $16,200. The company also paid cash distributions of $5,000.

  A reserve is what type of account

A reserve is what type of account? One of the important advantages of a partnership over a sole proprietorship? Ease of transferring ownership.

  Determine the issue price

Conner Enterprises issued $150,000 of 10%, 5-year bonds with interest payable semiannually. Determine the issue price if the bonds are priced to yield

  What amount does edwards recognizes a gain or loss of

Edwards, an S corporation, distributes a machine to Skip. What is the basis of the machine to Skip? What amount does Edwards recognizes a gain/loss of?

  Summarize the ethical factors in this situation

Tana Thorne works in a public accounting firm and hopes to eventually be a partner. Summarize the ethical factors in this situation

  Calculate the minimum transfer price

Calculate the minimum transfer price and indicate whether the internal transfer should occur. Show your calculations to receive credit for your answers

  Explain the purpose of adjusting and reversing entries

Explain the purpose of adjusting and reversing entries and when they would be used. Provide examples from Smart Dry-Cleaning Services to illustrate your answer

  What will be ttc dividend yield and capital gains yield

Taussig Technologies Corporation (TTC) has been growing at a rate of 20 percent per year in recent years. This same growth rate is expected to last.

  Production choice under a capacity constraint

Mack DasMesser, CEO of Lloydian Outpatient Surgical, is reviewing the financial results from the most recent fiscal year, trying to decide the profit-maximizing

  Changes in fund net position for the breukelen rts

Prepare a statement of revenues, expenses, and changes in fund net position for the Breukelen RTS for the year ended December 31, 2012.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd