Pension data for the Ben Franklin Company include the following for the current calendar year: Discount rate,
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Question:
Discount rate, 8%
Expected return on plan assets, 10%
Actual return on plan assets, 9%
Service cost, $180,000
January 1: | |||
PBO | $ | 1,380,000 | |
ABO | 980,000 | ||
Plan assets | 1,480,000 | ||
Amortization of prior service cost | 18,000 | ||
Amortization of net gain | 3,800 | ||
December 31: | |||
Cash contributions to pension fund | $ | 218,000 | |
Benefit payments to retirees | 238,000 | ||
Required:
1. Determine pension expense for the year.
2. Prepare the journal entries to record pension expense and funding for the year.
Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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