The following facts apply to the pension plan of Boudreau Inc. for the year 2014. Plan assets,
Question:
The following facts apply to the pension plan of Boudreau Inc. for the year 2014. Plan assets, January 1, 2014 $491,000 Projected benefit obligation, January 1, 2014 491,000 Settlement rate 8 % Service cost 41,310 Contributions (funding) 25,660 Actual and expected return on plan assets 48,210 Benefits paid to retirees 34,950 Using the preceding data, compute pension expense for the year 2014. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2014 and the year-end balances in the related pension accounts. BOUDREAU INC. Pension Worksheet—2014 General Journal Entries Memo Record Items Annual Pension Expense Cash Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, January 1, 2014 $ $ $ $ $ Service cost Interest cost Actual return Contributions Benefits Journal entry, December 31 $ $ Balance, December 31, 2014 $ $ $
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille