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 4% of their salary to the pension plan.During 2017,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 2017.

Question

Quizplus · Accepted Answer

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 4% of their salary to the pension plan.During 2017,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 2017.

Wags Inc Company Sponsors a Defined Contribution Pension Plan for Its