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Recording Entries for Defined Contribution Plan Hewlatt Inc. sponsors a de?ned contribution plan for its employees. In 2020, salaries eligible for a 3% payment toward defined contribution plans of employees are $880,000. Hewlatt funded 100% of its obligation to fund 3% toward contribution plans as of the end of the year. Hewlatt Inc. will also match contributions made by employees by the end of the year, up to 5% of salaries. Hewlatt estimates the obligation to match up to 5% of salaries to be $15,000 on December 31, 2020. The amount will be paid to defined contribution plan injanuary of 2021.
Problem 1: Record Hewlatt Inc.'s journal entries related to its defined contribution plan in 2020.
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