Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise
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Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that the projected level of earnings on plan investments is $190,000, the service cost component is $260,000, and interest on the pension liability is $170,000 for the year. Actual returns on plan assets for the year were $170,000, and the City is amortizing a deferred outflow resulting from a change in plan assumptions from a prior year in the amount of $7,000 per year. Prepare journal entries to record annual pension expense for the enterprise fund.
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Essentials Of Accounting For Governmental And Not-for-Profit Organizations
ISBN: 9781260570175
14th Edition
Authors: Paul Copley
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