Hobson Equipment Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation

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Hobson Equipment Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $20,000 for the period. The pension formula calculated a pension cost of $140,000. Only $106,000 was contributed to the pension plan administrator. Provide the journal entry for the
(a) Vacation pay and
(b) Pension benefit.

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Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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