Provide the entries to record the contributions

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An entity's retirement benefit plan provides for an annual contribution of 1,000,000 to a fund held and managed by a third party. the fund is legally separate from the entity and is to be used solely for the retirement pay of employees. The amount to be received by a retiring employee is dependent on the amount of contributions and the investment income earned on those contributions. The third party trustee assumes the obligation of disbursing the funds to retiring employees.

The entity made the following contributions to the funds:

2001 1,200,000

2002 700,000

2003 1,050,000

Question 1: Provide the entries to record the contributions.

Reference no: EM132512631

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