Bunill 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 $80 per employee.
2. It has a defined-contribution pension plan in which the company contributes 10% of gross earnings. Gross earnings in March were $30,000. The payment to the pension fund has not been made.
Instructions
Prepare the adjusting entries at March 31.