The following information is available for the pension plan of Radcliffe Company for the year 2012. Actual

Question:

The following information is available for the pension plan of Radcliffe Company for the year 2012.

Actual and expected return on plan assets                      $ 15,000
Benefits paid to retirees                                                      40,000
Contributions (funding)                                                     90,000
Interest/discount rate                                                            10%
Prior service cost amortization                                           8,000
Projected benefit obligation, January 1, 2012                500,000
Service cost                                                                        60,000

Instructions
  (a) Compute pension expense for the year 2012.
  (b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2012.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0470587287

14th Edition

Authors: kieso, weygandt and warfield.

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