Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is
Question:
Instructions
(a) Compute pension expense for 2017 and 2018.
(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:
2018 2017 $699,000 700,000 Plan assets (fair value), December 31 Projected benefit obligation, January1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortiz Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate 5849,000 800,000 140,000 Cr 250,000 60,000 24,000 10,000 115,000 500,000 240,000 90,000 30,000 12,000 120,000 550,000 920 ation of prior service cost 9%
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Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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