Kessler, Inc. received the following information from its pension plan trustee concerning the operation of the company's
Question:
Kessler, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2011:
The service cost component for 2011 is $150,000 and the amortization of prior service cost is $240,000. The company's actual funding of the plan in 2011 amounted to $510,000. The expected return on plan assets and the settlement rate were both 8%.
Instructions
(a) Determine the pension expense to be reported in 2011.
(b) Prepare the journal entry to record pension expense and the employers' contribution to the pension plan in2011.
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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Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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