Hanson Ltd. sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following balances related to this plan.
Plan assets (fair value)..............................£520,000
Defined benefit obligation...........................700,000
Pension asset/liability.................................180,000 Cr.
Accumulated net loss.................................91,000
As a result of the operation of the plan during 2019, the actuary provided the following additional data on December 31, 2019.
Service cost for 2019...................................£108,000
Discount (interest) rate.......................................9%
Actual return on plan assets in 2019....................48,000
Contributions in 2019...................................133,000
Benefits paid retirees in 2019...........................85,000
Instructions
Using the preceding data, compute pension expense for Hanson Ltd. for the year 2019 by preparing a pension worksheet that shows the journal entry for pension expense.