George Corporation has a defined benefit pension plan for its employees. The following information is available for
Question:
George Corporation has a defined benefit pension plan for its employees. The following information is available for 20X1:
PBO at 1/1 | $ 930,000 |
Payments made to retirees at 12/31 | 204,000 |
Service cost | 196,000 |
Actual return on plan assets | 30,000 |
Plan contributions at 12/31 | 130,000 |
Fair value of plan assets at 12/31 | 880,000 |
Amortization of prior service cost | 76,000 |
Discount rate | 10% |
Expected rate of return on plan assets | 6% |
Required:
1. What was the January 1, 20X1, fair value of the plan assets?
2. What is the expected dollar return on plan assets for 20X1?
3. What amount of pension expense should George report for the year ended December 31, 20X1?
4. What was the dollar amount of loss (gain) on plan assets that was recognized in OCI during 20X1?
5. Prepare the journal entries to record pension expense, the contribution, and the OCI effects.
Step by Step Answer:
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer