Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar
Question:
Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year:
Projected benefit obligation
Balance, January 1 $150,000,000
Service cost ......25,000,000
Internet cost .....15,000,000
Benefit paid ... (12,000,000)
Balance, December 31 $178,000,000
Plan assets
Balance, January 1 $90,000,000
Actual return on plan assets .11,000,000
Contribution ..... 23,000,000
Benefit paid . (12,000,000)
Balance, December 31 $112,000,000
The expected long-term return on plan assets is 10%. There were no other relevant data for the year.
Required:
1) Determine Burrito's pension expense for the year.
2) Prepare the journal entries to record the pension expense and funding for the year.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy