Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is
Question:
Instructions
a. Compute pension expense for 2019 and 2020.
b. Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years.
Transcribed Image Text:
2019 2020 $699,000 $849,000 Plan assets (fair value), December 31 Defined benefit obligation, January 1 700,000 800,000 Pension asset/liability, January 1 140,000 Cr. Service cost 60,000 90,000 24,000 Actual return on plan assets 30,000 Contributions (funding) 115,000 120,000 Accumulated benefit obligation, December 31 500,000 550,000 Discount (interest) rate 9% 9%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
a Computation of pension expense 2019 2020 Service cost 600...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Question Posted:
Students also viewed these Managerial Accounting questions
-
(Pension Expense, Journal Entries, Statement Presentation) Henning Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the...
-
Linda Berstler Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. The average remaining service life per employee is 20...
-
Linda Berstler Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan. Instructions (a) Compute the actual return on the plan...
-
Simplify each expression in Problems 722. Classify each answer by number of terms and degree. (x + 2y3z) - (x - 5y + 4z)
-
A cylindrical hole is drilled through the center of a steel ball bearing shown here in cross section. Denoting the length of the hole by L, show that the volume of the steel remaining is equal to the...
-
Morningstar publishes ratings data on 1208 company stocks (Morningstar website, October 24, 2012). A sample of 40 of these stocks is contained in the data set Morningstar. Use the data set to answer...
-
How many months does it take to save $200,000.00 based on the information provided in this problem?---
-
On January 1, Palisades, Inc., acquired 100 percent of Sherwood Companys common stock for a fair value of $120,000,000 in cash and stock. The carrying amounts of Sherwoods assets and liabilities...
-
Required information Exercise 21-14 (Algo) Identifying cash flows from investing activities and financing activities [LO21-5, 21-6] Skip to question [The following information applies to the...
-
Shayenne works for RAD in Ontario and earns an annual salary of $59,800.00, paid biweekly. Shayenne's employment will be terminated at the end of this pay period. She is entitled to 6% vacation pay...
-
Gottschalk plc sponsors a defined benefit plan for its 100 employees. On January 1, 2019, the company's actuary provided the following information. Pension plan assets (fair value and market-related...
-
Hiatt Toothpaste SA initiates a defined benefit pension plan for its 50 employees on January 1, 2019. The insurance company which administers the pension plan provided the following selected...
-
In the experiment about hormone injections in cows described in Exercise 39, a group of 52 Jersey cows increased average milk production from 43 pounds to 52 pounds per day, with a standard deviation...
-
Susan Jason, CPA, had been auditing the financial statements of Rosfeld Stores, Inc,, a large department store, for several years. During the last two years a nationwide economic recession had...
-
For each of the following scenarios, indicate whether action by the indicated party could be successfully brought against the auditor for (a) ordinary negligence under common law, (b) gross...
-
The items below appear on an employment application. Determine the level of measurement of the data for each category. (a) Highest grade level completed (b) Gender (c) Year of college graduation (d)...
-
What is global account management?
-
According to the AICPA's ethical standards, an auditor would be considered in- dependent in which of the following instances? a. The auditor has an automobile loan from a client bank. b. The auditor...
-
Uddin Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days...
-
A Bloomberg Businessweek subscriber study asked, In the past 12 months, when traveling for business, what type of airline ticket did you purchase most often? A second question asked if the type of...
-
Talarczyk Company sold 10,000 Super Spreaders on July 1, 2017, at a total price of $1,000,000, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is...
-
On May 1, 2017, Mount Company enters into a contract to transfer a product to Eric Company on September 30, 2017. It is agreed that Eric will pay the full price of $25,000 in advance on June 15,...
-
Turner Inc. began work on a $7,000,000 non-cancellable contract in 2017 to construct an office building. During 2017, Turner Inc. incurred costs of $1,700,000, billed its customers for $1,200,000...
-
The ledger of Novak Corp. at December 31, 2022, after the books have been closed, contains the following stockholders' equity accounts. Preferred Stock (11,000 shares issued) Common Stock (300,000...
-
Your answer is partially correct. During 2023, Darwin Corporation started a construction job with a contract price of $4.20 million. Darwin ran into severe technical difficulties during construction...
-
1. There are a Firm and a Worker. Worker can be of High ability, in which case he would like to Work when he is hired, or of Low ability, in which case he would rather Shirk. Firm would want to Hire...
Study smarter with the SolutionInn App