At the end of the current year, Maple Company has a projected benefit obligation of $439,000 for its pension plan, and the fair value of its pension plan assets is $450,000. The company has a debit balance of $5,000 in its Accrued/Prepaid Pension Cost account. Prepare the journal entry to adjust its Accrued/Prepaid Pension Cost account. Assume that the difference between the projected benefit obligation and the fair value of the pension plan assets is due to the actual return on plan assets being different from the expected return on plan assets. Indicate why and where (and the amount) Maple Company would report its Accrued/Prepaid Pension Cost.
Answer to relevant QuestionsAt the end of the current year, Chelsey Company has a projected benefit obligation of $600,000 for its pension plan, and the fair value of its pension plan assets is $580,000. The company has a credit balance of $32,000 in ...On December 31, 2010, the Palmer Company determined that the 2010 service cost on its defined benefit pension plan was $120,000. At the beginning of 2010, Palmer Company had pension plan assets of $520,000 and a projected ...On January 1, 2010, the Baznik Company adopted a defined benefit pension plan. At that time, the company awarded retroactive benefits to certain employees. These retroactive benefits resulted in a prior service cost of ...Use the information in RE21-1. Prepare the journal entry that Keller Corporation would make each year assuming the lease is classified as an operating lease.In RE21-1, Keller Corporation (the lessee) entered into an ...On January 1, 2010, Nelson Company leases certain property to Queens Company at an annual rental of $60,000 payable in advance at the beginning of each year for eight years. The first payment is received immediately. The ...
Post your question