Ichiro Company sponsors a defined benefit pension plan. The following information related to the pension plan is
Question:
Ichiro Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011 (amounts in thousands).
Instructions
(a) Compute pension expense for 2010 and 2011.
(b) Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for bothyears.
Transcribed Image Text:
2010 2011 465,000 700,000 Plan assets (fair value), December 31 Defined benefit obligation, January 1 Pension asset/liability balance, January 1 Unrecognized past service cost, January 1 Service cost Actual and expected return on plan assets Amortization of past service cost Contributions (funding) Discount rate 380,000 600,000 40,000 Cr. 250,000 60,000 24,000 10,000 110,000 9% 240,000 90.000 30.000 12,000 120,000 9%
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a Computation of pension expense 2010 2011 Service cost 60000 90000 Interest cost 600000 X ...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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