Question: D&D Inc has a defined benefit pension plan for all employees. The following information was compiled in order to accrue the pension cost for 2019:

D&D Inc has a defined benefit pension plan for all employees. The following information was compiled in order to accrue the pension cost for 2019:

Service cost 150,000

Projected benefit 700,000

Interest (Discount) rate 7%

Plan assets Jan 1 800,000

Plan assets Dec 31 840,000

Company contributions 160,000

There are no prior year service costs. Give the journal entry for the pension accrual.

Benefits paid 90,000

There are no prior year service costs. Give the journal entry for the pension accrual.

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