Porgy Co.’s retirement plan requires a P250,000 annual contribution to a fund held by a third party trustee. The fund is legally separate from Porgy Co. and is available solely for the payment of the retirement benefits of Porgy’s employees. At the beginning 2019, the fund balance is P2,800,000. In its December 31, 2018 and December 31, 2019 statements of financial position, Porgy reported accrued payable for retirement benefits of P30,000 and P80,000, respectively. Payments to retiring employees during 2019 totaled P750,000. How much is the retirement benefits expense in 2019? 250,000 b. 700,000 c. 750,000 d. 800,000
Porgy Co.’s retirement plan requires a P250,000 annual contribution to a fund held by a third party trustee. The fund is legally separate from Porgy Co. and is available solely for the payment of the retirement benefits of Porgy’s employees. At the beginning 2019, the fund balance is P2,800,000. In its December 31, 2018 and December 31, 2019 statements of financial position, Porgy reported accrued payable for retirement benefits of P30,000 and P80,000, respectively. Payments to retiring employees during 2019 totaled P750,000. How much is the retirement benefits expense in 2019? 250,000 b. 700,000 c. 750,000 d. 800,000
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 16CE
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- Porgy Co.’s retirement plan requires a P250,000 annual contribution to a fund held by a third party trustee. The fund is legally separate from Porgy Co. and is available solely for the payment of the retirement benefits of Porgy’s employees. At the beginning 2019, the fund balance is P2,800,000. In its December 31, 2018 and December 31, 2019
statements of financial position , Porgy reported accrued payable for retirement benefits of P30,000 and P80,000, respectively. Payments to retiring employees during 2019 totaled P750,000. How much is the retirement benefits expense in 2019?
250,000 b. 700,000 c. 750,000 d. 800,000
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