Vacation Pay and Pension Benefits

Manfield Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $24,000 for the period. The pension formula calculated a pension cost of $258,000. Only $15,480 was contributed to the pension plan administrator.

(a) Provide the journal entry for the vacation pay. If an amount box does not require an entry, leave it blank.

	Vacation Pay Expense	fill in the blank 1ac67002b03dff2_2	fill in the blank 1ac67002b03dff2_3
	Vacation Pay Payable	fill in the blank 1ac67002b03dff2_5	fill in the blank 1ac67002b03dff2_6

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Vacation pay is an adjusting entry. Recall that all adjusting entries affect a balance sheet account and an income statement account.

(b) Provide the journal entry for the pension benefit. If an amount box does not require an entry, leave it blank.

	Pension Expense	fill in the blank e04775fcbfa2072_2	fill in the blank e04775fcbfa2072_3
	Cash	fill in the blank e04775fcbfa2072_5	fill in the blank e04775fcbfa2072_6
	Unfunded Pension Liability	fill in the blank e04775fcbfa2072_8	fill in the blank e04775fcbfa2072_9