Below Are Two Independent Sets of Transactions for Welcott Company:​

question 55

Essay

Below are two independent sets of transactions for Welcott Company:​
(a) Welcott provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $78,000. Journalize the adjusting entry required on January 31, the end of the first month of the year, to record the accrued vacation pay.​
(b) Welcott maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Northern Trust, by the fifteenth of the month following the end of each quarter. Assuming that the pension cost is $119,600 for the quarter ended December 31, journalize entries to record
(1) the accrued pension liability on December 31 and
(2) the payment to the funding agent on January 15.

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