$$Pension data for the Metro Company include the following for the current calendar year: 

 

Discount rate, $8\%$

Expected return on plan assets, $10\%$

Actual return on plan assets, $9\%$

Service cost, $$200,000$

January $1$:

PBO $$1,400,000$

ABO $1,000,000$

Plan assets $1,500,000$

Amortization of prior service cost $20,000$

Amortization of net gain $4,000$

December $31$:

Cash contributions to pension funds $$220,000$

Benefit payments to retirees $240,000$

Required:

$1.$ Determine the pension expense for the year.

$2.$ Prepare the journal entries to record:

$1)$ Pension expense

$2)$ Contribution

$3)$ Benefit payment

$4)$ Any gain or loss

Answer rating: 100% (QA)

To determine the pension expense for the year we need to calculate several components Service cost I... View the full answer