Question

The pension plan for GL Inc. requires a contribution to the plan administrator equal to 11% of employee salaries. Salaries were $575,600 for the period. The journal entry to record the pension benefit would include a.a debit to Cash for $63,316. b.a credit to Cash for $63,316. c.a debit to Postretirement Benefit Expense for $63,316. d.a credit to Salary Expense for $63,316.

Answer 1

Answer:

b.a credit to Cash for $63,316. and c.a debit to Postretirement Benefit Expense for $63,316

Explanation:

Given that the pension plan for GL Inc. requires a contribution to the plan administrator equal to 11% of employee salaries. And

Salaries = $575,600

Pension contribution = 11% × $575,600

                                   = $63,316

To record this,

Debit Post retirement Benefit Expense (p/l)   $63,316

Credit Cash account                                         $63,316

The right options are b.a credit to Cash for $63,316. and c.a debit to Postretirement Benefit Expense for $63,316