Question
In: Accounting
Sheridan Ltd. provides a defined contribution pension plan for its employees. Currently, the company has 44...
Sheridan Ltd. provides a defined contribution pension plan for
its employees. Currently, the company has 44 full-time and 66
part-time employees. The pension plan requires the company to make
an annual contribution of $2,400 per full–time employee, and $1,450
per part–time employee, regardless of their annual salary. In
addition, employees can match the employer’s contribution in any
given year.
At the beginning of the year, 18 full–time and 15 part–time
employees elected to contribute to their pension plan by matching
the company’s contribution. An equal amount of funds was withheld
from the employees’ cheques in order to fund their pension
contribution. Both the employees’ and employer’s contributions are
sent to the plan trustee at year end.
What amount of annual pension expense will the company report?
| Pension expense to be reported |
Prepare a summary journal entry to record Sheridan Ltd.’s payment to the plan trustee.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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Your organization currently has a defined contribution pension
plan with employees contributing up to 3% with a company match.
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longer be enrolled in that plan. Instead, they will be enrolled in
the new Group Registered Retirement Savings Plan (RRSP) with the
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Your organization currently has a defined contribution pension plan with employees contributing up to 3% with...
Your organization currently has a defined contribution pension
plan with employees contributing up to 3% with a company match.
Effective with the first pay of the new year, new employees will no
longer be enrolled in that plan. Instead, they will be enrolled in
the new Group Registered Retirement Savings Plan (RRSP) with the
same contribution options. In your own words, explain the
difference in the T4 information slip reporting for these two
groups of employees.
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plan with employees contributing up to 3% with a company match.
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longer be enrolled in that plan. Instead, they will be enrolled in
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Question 10 Sheridan Company provides the following information about its defined benefit pension plan for the...
Question 10
Sheridan Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$89,800
Contribution to the plan
107,000
Prior service cost amortization
10,700
Actual and expected return on plan assets
65,200
Benefits paid
40,100
Plan assets at January 1, 2020
647,500
Projected benefit obligation at January 1, 2020
707,800
Accumulated OCI (PSC) at January 1, 2020
147,500
Interest/discount (settlement) rate
9
%
Prepare a pension worksheet inserting January 1, 2020, balances,
showing...
Question 10 Sheridan Company provides the following information about its defined benefit pension plan for the...
Question 10
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defined benefit pension plan for the year 2020.
Service cost
$89,800
Contribution to the plan
107,000
Prior service cost amortization
10,700
Actual and expected return on plan assets
65,200
Benefits paid
40,100
Plan assets at January 1, 2020
647,500
Projected benefit obligation at January 1, 2020
707,800
Accumulated OCI (PSC) at January 1, 2020
147,500
Interest/discount (settlement) rate
9
%
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Specifically, she is interested...
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