Question

Hollander City maintains a defined benefit pension plan for its employees. In a recent year, the city contributed $12 million to its pension fund. However, its annual required contribution as calculated by its actuary was $22 million. The city accounts for the pension contributions in the general fund.
Required
1. Record the pension expenditure and related liability in the general fund and account group.
2. Suppose that in the following year the city contributed $14 million to its pension fund, but its annual required contribution per its actuary was only $12 million. Prepare the appropriate journal entries.


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  • CreatedApril 13, 2015
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