Gander Products Has a Defined Contribution Pension Plan for Its

question 42

Essay

Gander Products has a defined contribution pension plan for its employees.The plan requires the company to contribute 6% of these employees' salaries to the pension.In 2013,total salary for employees covered by the pension plan totalled $40 million,of which 75% is attributable to employees involved in manufacturing while the remaining 25% of salaries relate to administrative staff.The company contributed $500,000 to the pension during the year.
Requirement:
Provide the summary journal entry for Gander's pension plan for 2013.

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Definitions:

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