Hewlatt Inc. sponsors a defined contribution retirement plan for its employees. In the current year, salaries...

 

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Hewlatt Inc. sponsors a defined contribution retirement plan for its employees. In the current year, salaries eligible for a 3% payment toward defined contribution retirement plans of employees are $1,056,000. Hewlatt made the required 3% contribution at 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 $18,000 on December 31. The amount will be paid to the trustee of the defined contribution retirement plan in January of the following year. Record Hewlatt Inc.'s journal entries to fund the retirement plan with (1) the 3% payment and (2) the 5% match contribution. Date (1) Dec. 31 (2) Dec. 31 Check Account Name To record payment to defined contribution retirement plan. Cash Plan Assets Accrued Pension Liability Projected Benefit Obligation OCI-Pension Gain/Loss Save Ans OCI-Prior Service Cost Pension Expense Dr. Cr. Next > Hewlatt Inc. sponsors a defined contribution retirement plan for its employees. In the current year, salaries eligible for a 3% payment toward defined contribution retirement plans of employees are $1,056,000. Hewlatt made the required 3% contribution at 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 $18,000 on December 31. The amount will be paid to the trustee of the defined contribution retirement plan in January of the following year. Record Hewlatt Inc.'s journal entries to fund the retirement plan with (1) the 3% payment and (2) the 5% match contribution. Date (1) Dec. 31 (2) Dec. 31 Check Account Name To record payment to defined contribution retirement plan. Cash Plan Assets Accrued Pension Liability Projected Benefit Obligation OCI-Pension Gain/Loss Save Ans OCI-Prior Service Cost Pension Expense Dr. Cr. Next >

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Journal Entries for Hewlatt Incs Defined Contribution Retirement Plan 1 Recording the 3 Payment Date ... View the full answer