Question

In: Accounting

chapter 10-17 instructions Yuri Co. operates a chain of gift shops. The company maintains a defined...

chapter 10-17

instructions

Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $350,000 for the quarter ended December 31.

Required:
a. Journalize the entries to record the accrued pension liability on December 31 (on page 11 of the journal) and the payment to the funding agent on January 15 (on page 12 of the journal). Refer to the Chart of Accounts for exact wording of account titles.
b. How does a defined contribution plan differ from a defined benefit plan?

CHART OF ACCOUNTS
Yuri Co.
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Federal Income Tax Payable
219 Employees State Income Tax Payable
221 Retirement Savings Deductions Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
228 Product Warranty Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Supplies Expense
535 Payroll Tax Expense
536 Vacation Pay Expense
537 Pension Expense
538 Cash Short and Over
539 Product Warranty Expense
540 Miscellaneous Expense

a. Journalize the entries to record the accrued pension liability on December 31 (on page 11 of the journal) and the payment to the funding agent on January 15 (on page 12 of the journal). Refer to the Chart of Accounts for exact wording of account titles.

PAGE 11

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

PAGE 12

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2






Solutions

Expert Solution

On page 11

ACCOUNTING EQUATION

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

ASSETS

LIABILITIES

EQUITY

1

31-Dec

Pension Expense a/c Dr                                                                   To Unfunded Pension liabiltiy a/c Cr

537         227

$350,000

$350,000

$350,000

($350,000)

2

on page 12

ACCOUNTING EQUATION

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

ASSETS

LIABILITIES

EQUITY

1

15-Jan

Unfunded Pension liabiltiy a/c                  Dr                                                                   To Cash a/c Cr

227         110

$350,000

$350,000

($350,000)

($350,000)

2


Related Solutions

Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan...
Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $365,000 the quarter ended December 31 Journalize the entry to record the accrued pension liability payment to the funding agent on January 15.
The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of...
The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small base salary) in order to encourage them to be aggressive in their sales efforts.      The following worksheet contains cost and revenue data for Shop 48 and is typical of the company’s many outlets: Per...
The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of...
The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small base salary) in order to encourage them to be aggressive in their sales efforts. The following worksheet contains cost and revenue data for Shop 48 and is typical of the company’s many outlets: Per...
The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of...
The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small base salary) in order to encourage them to be aggressive in their sales efforts.      The following worksheet contains cost and revenue data for Shop 48 and is typical of the company’s many outlets: Per...
Has Beans Inc. operates a chain of lunch shops. The company is considering two possible expansion...
Has Beans Inc. operates a chain of lunch shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,740,000. Expected annual net cash inflows are $1,650,000 with zero residual value at the end of ten years. Under Plan? B, Has Beans would open three larger shops at a cost of $ 8,540,000. This plan is expected to generate net cash inflows of $1,050,000 per year for ten ?years, the estimated...
Cuppa Inc operates a chain of lunch shops. The company is considering two possible expansion plans....
Cuppa Inc operates a chain of lunch shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,240,000. Expected annual net cash inflows are $ 1,650,000 with zero residual value at the end of ten years. Under Plan​ B, Cuppa would open three larger shops at a cost of $ 8,140,000. This plan is expected to generate net cash inflows of $ 1,500,000 per year for ten ​years, the estimated...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:Quarter 1Quarter 2Quarter 3Quarter 4  Budgeted Unit Sales32,00052,00026,00052,000         Each T-shirt is expected to sell for $20.The purchasing manager buys the T-shirts for $8 each.The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter’s sales demand.Selling and administrative expenses...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:        Quarter 1 Quarter 2 Quarter 3 Quarter 4   Budgeted Unit Sales 40,000 60,000 30,000 60,000         •    Each T-shirt is expected to sell for $15. •    The purchasing manager buys the T-shirts for $6 each. • The company needs to have enough T-shirts...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted Unit Sales 42,000 64,000 32,000 64,000 Each T-shirt is expected to sell for $17. The purchasing manager buys the T-shirts for $7 each. The company needs to have enough T-shirts on hand at the end of each quarter to...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Budgeted Unit Sales Quarter 1 47,000 Quarter 2 74,000 Quarter 3 37,000 Quarter 4 74,000 Each T-shirt is expected to sell for $22. The purchasing manager buys the T-shirts for $9 each. The company needs to have enough T-shirts on hand at the end of each quarter to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT