Exercise 11-15 Podsednik Corporation has 20 employees who each earn $140 a day.
ID: 2582150 • Letter: E
Question
Exercise 11-15
Podsednik Corporation has 20 employees who each earn $140 a day. The following information is available.
1.
2.
3.
Prepare Podsednik’s journal entries to record these transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
Exercise 11-15
1.
At December 31, Podsednik recorded vacation benefits. Each employee earned 5 vacation days during the year.2.
At December 31, Podsednik recorded pension expense of $100,000, and made a contribution of $70,000 to the pension plan.3.
In January, 18 employees used 1 vacation day each.Explanation / Answer
1. As 20 employees earned 5 vacations so,
Dec 31. debit vacation benefit expense with $14,000
Credit vacation benefit payable with $ 14,000
2. if penson expense is $100,000 and contribution is $75,000
Dec 31. Debit pension expense with $100,000
Credit cash with $75,000
Credit pension payable with $25,000
3. jan 18 debit vacation benefit payable with $2,800
Credit cash with $2,800
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