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Question 11.6: Vacation Pay and Pension Benefits Manfield Services Company ...

Vacation Pay and Pension Benefits

Manfield Services Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $44,000 for the period. The pension plan requires a contribution to the plan administrator equal to 8% of employee salaries. Salaries were $450,000 during the period.

Provide the journal entry for the (a) vacation pay and (b) pension benefit.

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