Gander Products has a defined contribution pension plan for its employees. The plan requires the company to contribute 6% of these employees' salaries to the pension. In 2019, total salary for employees covered by the pension plan totalled $40 million, of which 75% is attributable to employees involved in manufacturing while the remaining 25% of salaries relate to administrative staff. The company contributed $500,000 to the pension during the year.
Required:
Provide the summary journal entry for Gander's pension plan for 2019.

Question

Quizplus · Accepted Answer

The Answer of Gander Products has a defined contribution pension plan for its employees. The plan requires the company to contribute 6% of these employees' salaries to the pension. In 2019, total salary for employees covered by the pension plan totalled $40 million, of which 75% is attributable to employees involved in manufacturing while the remaining 25% of salaries relate to administrative staff. The company contributed $500,000 to the pension during the year.
Required:
Provide the summary journal entry for Gander's pension plan for 2019.

Gander Products Has a Defined Contribution Pension Plan for Its