Ditek Corp. provides a defined contribution pension plan for its employees. Under the plan, the company is required to contribute 3% of employees’ gross pay to a fund trustee each year. Ditek’s total payroll for 2011 was $2,732,864 and the company made all required payments within the year. Prepare a summary journal entry to record Ditek’s pension expense for the year.
Answer to relevant QuestionsRefer to BE19-10. Ignoring any differences in the actuarial valuation basis for the ABO, calculate the pension expense for Uddin Corporation assuming that it elected to apply the immediate recognition approach. Unsure Corp. has recently decided to implement a pension plan for its employees; however, it is unsure if it would like to structure the pension as a defined contribution plan or a defined benefit plan. As requested by ...Jabara Limited 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 ...Mila Enterprises Ltd. provides the following information about its defined benefit pension plan: Balances or Values at December ............. 31, 2011 Accrued benefit obligation, accounting purposes ...Queensland Importers provides the following pension plan information: Fair value of pension plan assets, Jan. 1, 2011 ........ $1,418,750 Fair value of pension plan assets, Dec. 31, 2011 ...... 1,596,875 Contributions ...
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