Wags Inc Company sponsors a defined contribution pension plan for its employees. The plan specifies that the company will match the amount each employee contributes to the plan. Employees are eligible to contribute up to 10% of their salary to the pension plan. During 2020, employees covered by the pension plan earned salaries totalling $30 million. Employee contributions to the pension totalled $3 million. Wags Inc contributed $2 million to the plan during the year.
Required:
Provide the summary journal entry for Wags Inc's pension plan for 2020.

Question

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The Answer of Wags Inc Company sponsors a defined contribution pension plan for its employees. The plan specifies that the company will match the amount each employee contributes to the plan. Employees are eligible to contribute up to 10% of their salary to the pension plan. During 2020, employees covered by the pension plan earned salaries totalling $30 million. Employee contributions to the pension totalled $3 million. Wags Inc contributed $2 million to the plan during the year.
Required:
Provide the summary journal entry for Wags Inc's pension plan for 2020.

Wags Inc Company Sponsors a Defined Contribution Pension Plan for Its