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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Prepare the March 28 journal entries to record the payroll, including employee and employer contributions to the pension plan.
For simplicity, ignore income taxes and other statutory deductions. (List all debit entries before credit entries. Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts.)
Date Account Titles and Explanation
March 28
(To record payment of salaries and wages expense)
(To record company portion of pension benefit expense)
Debit
T
Credit

Transcribed Image Text:Sunland Corporation provides a defined contribution pension plan for its employees. Under the plan, the company deducts 4% of each
employee's gross pay for each bi-weekly pay period. The company then contributes 6% of the employees' gross pay to the pension
plan. The combined contributions are then submitted to the pension trustee within 10 days of the end of the month in which the pay
was earned.
For the first pay period of March (from Sunday March 1 to March 14, 2023), Sunland's total gross payroll was $302,000. Total gross
payroll for the period March 15 through March 28, 2023, was $322,000. The total anticipated payroll for the period March 29 through
April 10, 2023, was $311,000 (employees worked Monday through Friday each week). On April 10, 2023, Sunland submitted the
pension contributions to the trustee for the month of March (including accruals up to and including March 31).
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