On December 31, 2007 the Robey Company accumulated the following information for 2007 in regard to its
Question:
On December 31, 2007 the Robey Company accumulated the following information for 2007 in regard to its defined benefit pension plan:
Service cost ................$105,000
Interest cost on projected benefit obligation .....12,000
Expected return on plan assets ...........11,000
Amortization of unrecognized prior service cost ...3,000
Amortization of unrecognized net gain ......1,000
On its December 31, 2006 balance sheet, the company had reported a prepaid/accrued pension cost liability of $14,000.
Required
1. Compute the amount of Robey Company’s pension expense for 2007.
2. Prepare the journal entry to record Robey’s 2007 pension expense if it funds the pension plan in the amount of: (a) $108,000, (b) $100,000, and (c) $112,000.
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones