Kea 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 contributes 7% of the gross pay for the employer contribution. Both amounts are remit- ted to the pension trustee within 10 days of the end of each month for the previous month's payrolls. At November 30, 2017, Kea reported $29,300 of combined withheld and matched contributions owing to the trustee. During December, Kea reported gross salaries and wages expense of $276,100.
Instructions
(a) Prepare the entry to record the December payment to the plan trustee.
(b) What amount of pension expense will the company report for December 2017?
(c) Determine the appropriate pension account and its balance to be reported on the December 31, 2017 statement of financial position.