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Cerner Company has two fringe benefit plans for its employees:
1. It grants employees 2 days' vacation for each month worked. Ten employees worked the entire month of March at an average daily wage of $120 per employee.
2. In its pension plan the company recognizes 10% of gross earnings as a pension expense. Gross earnings in March were $40,000. No contribution has been made to the pension fund.
Instructions
Prepare the adjusting entries at March 31.
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