n the year 2021, Qiqi Company provides benefits to employees through a defined contribution plan. The plan has the following details: • 10% of gross payroll is to be contributed to the funding agency • 5% annual sales exceeding P12,000,000. • gross payroll of the company was P10,500,000 • total sales amounted to P35,000,000. • Friday contributed P3,200,000 to the employees’ pension fund for the year. Requirements: 1. Provide the journal entries for the year 2021. 2. What amount of Prepaid /Accrued benefit expense will be recognized at the end o

n the year 2021, Qiqi Company provides benefits to employees through a defined contribution plan. The plan has the following details: • 10% of gross payroll is to be contributed to the funding agency • 5% annual sales exceeding P12,000,000. • gross payroll of the company was P10,500,000 • total sales amounted to P35,000,000. • Friday contributed P3,200,000 to the employees’ pension fund for the year. Requirements: 1. Provide the journal entries for the year 2021. 2. What amount of Prepaid /Accrued benefit expense will be recognized at the end o

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 16CE

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In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.
Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.
Greg Company provides retirement benefits to employees through defined contribution plan. The plan provides that Greg Company shall contribute annually 9% of gross payroll to a funding agency. In addition, the entity is also required to contribute 6% of annual sales exceeding 15,000,000. During 2020, gross payroll of the company was P 6,500,000 and total sales amounted to P 32,000,000. How much is the retirement benefit expense taken to profit or loss for the year 2020? Assuming that during 2020, the company contributed P 1,700,000 to the trustee. How much is the prepaid or accrued benefit arising from the transaction?
Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P10,000,000 P670,000 2022 12,200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31, 2022?
Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P10,000,000 P670,000 2022 12,200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31.2022? O P430.000 and P180,000 accrued O P610,000 and P180,000 accrued O P430,000 and P10,000 prepaid O P610.000 and P10.000 prepaid
Permission to Dance Company provides retirement benefits to employees through defined contribution plan. The plan provides Permission to Dance shall contribute annually 8% of gross payroll to a funding agency. In addition, the entity is also required to contribute 5% of annual sales exceeding P10,000,000. During 2021, gross payroll of the company was P6,000,000 and the total sales amounted to P35,000,000. Which of the following is part of the entries that would be recorded by Permission to Dance assuming that the company contributed P1,700,000?
Pepsi Cola Company has a define contribution plan that covers its existing employees. The terms of the plan required Pepsi Cola to contribute 10% of the annual employees; salaries to the retirement plan each year. The payroll show the annual salaries as follows: 2018 P12,000,000 P12,500,000 2019 Pepsi Cola contributed P1,000,000 in the plan in 2018 and P1,500,000 in 2019. a. How much is the benefit expense in 2018? b. How much is the balance of prepaid (accrued) benefit expense in 2018? c. How much is the benefit expense in 2019? d. How much is the balance of prepaid (accrued) benefit expense in 2019?
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You gathered the following information related to Ashley Company’s the defined benefit plan for the current year ended December 31: Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 Contributions paid to the fund: P80 million Benefits paid to retired employees: P50 million The defined benefit cost for the year is A P250 million B P280 million C P200 million D P120 million
Company A has established a defined benefit plan for the employee. Annual payments under the plan are equal to highest lifetime salary multiplied by 2% multiplied by the number of years with the entity. On December 31, 2020, an employee had worked with the entity for 15 years. The current annual salary of the employee is P600,000. The employee is expected to retire in 10 years and the increase in salary is expected to be 4% per year. The discount rate is 10%. The employee is expected to live 8 years after retirement and shall receive the first annual pension payment one year after retirement. Compute for the ff: 1)Current service cost in 2021, 2022, 2023 and 2024 2)Interest expense in 2021, 2022, 2023 and 2024 3)PBO, Dec. 31,2021, Dec. 31,2022, Dec. 31,2023 and Dec. 31,2024
Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 600,000 Pension asset/liability 120,000 Accumulated OCI (PSC) 100,000 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $90,000 Settlement rate, 9% Actual return on plan assets 55,000 Amortization of prior service cost 19,000 Expected return on plan assets 52,000 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,000 Contributions 99,000 Benefits paid retirees 85,000 Instructions Using the data above, compute pension expense for Webb Corp. for the year 2020 by preparing a pension worksheet. Prepare the journal entry for pension expense for 2020.