At the end of the current year, Maple Company has a projected benefit obligation of $439,000 for

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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.


Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

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