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The entity’s monthly contributions to the SSS for the benefit of its employees are accounted for as defined benefit plans.
a. True
b. False
According to PAS 19, contributions to a defined contribution plan are recognized
a. at each year-end
b. where an employer makes those contributions
c. when an employee has rendered service in exchange for those contributions
d. at the beginning of each reporting period
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Solved in 2 steps
- In EA14, you prepared the journal entries for the employee of Toren Inc. You have now been given the following additional information: May is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 70% of the health insurance premium. Using the information from EA14 and the additional information provided: A. Record the employer payroll for the month of May, dated May 31, 2017. B. Record the payment in cash of all employer liabilities only on June 1.According to PAS 19, short-term employee benefits are recognized a. at each year-end b. at each month-end c. on a semi-monthly basis d. when an employee has rendered service in exchange for those benefits.According to PAS 19, contributions to a defined contribution plan are recognized a. at each year-end b. when an employer makes those contribution c. when an employee has rendered service in exchange for those contributions d. at the beginning of each reporting period
- AOG Inc. provides a defined benefit plan for its employees, and reports using ASPE. The pension plan administrator for AOG Inc. provided the following information for the year ended December 31, 2020 Fair value of plan assets, January................…..….…...... 820,000 Defined benefit obligation, January 1.... Current service cost............ Employer contributions...... Benefits paid to retirees...... Actuarial Gain............ Actual return............ Interest (discount) rate.. *********** 760,000 60,000 85,000 50,000 25,000 5% 6% Required: a.) What is the fair value of the plan assets at December 31, 2020? b.) What is the balance in the Net Defined Benefit/Liability account at December 31, 2019 and what is the funded status?On December 31, 2020, an entity paid P200,000 contribution to a defined contribution plan. Of this amount, P150,000 is in part exchange for services performed by the employees in December 2019, and the balance of P50,000 is in respect of services to be performed in 2020.The contribution to the defined contribution plan is recorded on December 31, 2019 with a: a. Some other answer. b. Debit to :Employee benefit expense for P150,000 c. Debit to Prepaid benefit expense P50,000 d. Credit to Cash for P100,000b. Assume that the employees of Purnell, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of Example 6-5 $24,100 and that the employees' contributions are to be deducted by the employer. Journalize the September 15 payment of wages, The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: assuming that the state contributions of the employees are kept in a separate account. Debit Credit For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Wages Expense 24,762.70 FICA Taxes Payable-OASDI 1,535.29 Date Account Debit Credit FICA Taxes Payable-HI 359.06 Sept. 15 Wage Expense v 8,500 x FIT Payable 3,714.00 FICA Taxes Payable-OASDI 650.25 x SIT Payable 55.25 FICA Taxes Payable-HI V Group Insurance Payments W/H 54.70 Employees Disability Contributions Payable v Cash 19,044.40 Employees FIT Payable v Employees SIT Payable v Example 6-7 Cash v The…
- Stark Inc. follows IFRS for financial reporting and has established a defined benefit pension plan for employees. Pertinent details for the year ended December 31, 20X5, are as follows: Stark Inc. follows IFRS for financial reporting and has established a defined benefit pension plan for employees. Pertinent details for the year ended December 31, 20X5, are as follows: Stark Inc. follows IFRS for financial reporting and has established a defined benefit pension plan for employees. Pertinent details for the year ended December 31, 20X5, are as follows: Current service cost accrued end of year $52,000 Past service cost accrued beginning of year $10,000 Benefits paid evenly throughout the year $85,000 Discount rate used by actuary 6% Actuarial losses in the year $10,000 Pension obligation as at January 1, 20X5 $650,000 Plan assets as at January 1, 20X5 $625,000 What is the balance of the pension obligation as at December 31, 20X5? a. $671,500 b. $654,050 c. $674,050 d. $673,450While examining the books and records in the general and administrative expense account of X Ltd., you came across the following contribution to the registered pension plan made by the Company on behalf of two key employees for the year ended December 31st.2021:- Registered Pension…………………..Employment Plan compensation,2021 President……………………………………..$15,000……………………………………….$180,000 Vice President……………………………….$14,000………………………………………..$ 95,000 The pension plan is a defined contribution(money purchase)plan. The contribution shown were matched by equal contribution made by the employees. Reconciling accounting income to to Division B income, you discover that the following portion of RPP contribution should be disallowed from being expensed by the X Ltd for tax purposes for the year ended December 31st.2021:- a. $NIL b. $13070 c. $10,000…REQUIRED: Compute the employee benefit expense for the current year, net remeasurement loss for the current year, defined benefit cost and the amount of prepaid benefit cost that should be reported on December 31
- Determine the employee benefit expense for the current year, remeasurement related to the defined benefit plan and prepare journal entry to record the employee benefit expense.Under IAS 19 on Employee Benefits, which of the following terms best describes other long-term employee benefits a. Benefits not falling due wholly within twelve months of the end of the period in which the service is rendered. b. Benefits which are payable after completion of employment c. Benefits payable as a result of an entity's decision to end an employment before the normal retirement care. d. Benefits which fall due within twelve months of the end of the period in which the service is rendered.Date: Name: Exercise 9.2 A. Find the employer's FICA deductions for each of the following employees. B. Find the amounts of the FUTA taxes for the current pay period for each of the following employees. FUTA Employee Year-to-Date Current Social Security Medicare Subject to FUTA Gross F. Todd $6,959.28 $1,088.64 T. Stanley $7,882.51 $827.44 R. Manley $7,136.44 $1,528.99 F. Chastain $6,485.47 $952.38