Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is
Question:
Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2025 and 2026.
Instructions
a. Compute pension expense for 2025 and 2026.
b. Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.
Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate No benefits were paid in 2025 or 2026. 2025 $699,000 700,000 140,000 Cr. 250,000 60,000 24,000 10,000 115,000 500,000 9% 2026 $849,000 800,000 ? 240,000 90,000 30,000 12,000 120,000 550,000 9%
Step by Step Answer:
Although not required students could be encouraged ...View the full answer
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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