Current Liabilities and Payroll Accounting

Podsednik Corporation has 20 employees who each earn $140 a day. The following information is available.

1. At December 31, Podsednik recorded vacation benefits. Each employee earned 5 vacation days during the year.
2. At December 31, Podsednik recorded pension expense of $100,000, and made a contribution of $70,000 to the pension plan.
3. In January, 18 employees used on vacation day each

Instructions

Prepare Podsednik's journal entries to record these transactions

Solution