The following information is available for the pension plan of Radcliffe Company for the year 2022. Interest
Question:
The following information is available for the pension plan of Radcliffe Company for the year 2022.
Interest revenue on plan assets .................... $ 15,000
Benefits paid to retirees .................................... 40,000
Contributions (funding) ..................................... 90,000
Discount (interest) rate .......................................... 10%
Defined benefit obligation, January 1, 2022 .... 500,000
Service cost ............................................................ 60,000
Instructions
a. Compute pension expense for the year 2022.
b. Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2022.
Step by Step Answer:
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield