Pension plan entries

Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $151,200 for the quarter ended December 31.

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a. Journalize the entry to record the accrued pension liability on December 31. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Dec. 31	CashPayroll Tax ExpensePension ExpenseSalaries ExpenseUnfunded Pension Liability	- Select -	- Select -
	Accounts PayableCashPension ExpenseSalaries PayableUnfunded Pension Liability	- Select -	- Select -

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Journalize the entry to record the accrued pension liability payment to the funding agent on January 15. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Jan. 15	CashPayroll Tax ExpensePension ExpenseSalaries ExpenseUnfunded Pension Liability	- Select -	- Select -
	Accounts PayableCashPension ExpenseSalaries PayableUnfunded Pension Liability	- Select -	- Select -

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b. The pension plan where a company pays the employee a fixed annual amount based on a formula is a

defined contribution plan.defined benefit plan.