Sheehan bank corp, has a defined pension plan that covers all its full time employees. The chief accountant obtained the following data relating to the pension plan in 2014, Calculate all the elements of pension expense for 2014 and make journal entries at the end of the year. Calculate the defined benefit obligation and fair value of plan assets at

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Sheehan bank corp, has a defined pension plan that covers all its full time employees. The chief accountant obtained the following data relating to the pension plan in 2014,

  1. Calculate all the elements of pension expense for 2014 and make journal entries at the end of the year.
  2. Calculate the defined benefit obligation and fair value of plan assets at the end of 2014

Defined benefit obligation,Dec 31,2013

$424,000

Benefits paid to retirees in 2014

28,000

Current service cost for 2014

26,800

Actual return on plan assets for 2014

19,800

Fair value of plan assets, dec 31,2013

312,000

Contributions to the pension fund at year end 2014

14,800

Actuarial revaluation made at the end of 2014, that the increased pension liability because of a revision upward of salary increase rates for employees

19,200

Long term interest rate on high quality corporate bonds

6%

Related Book For  answer-question

Advanced Accounting

5th Edition

Authors: Debra C. Jeter, Paul Chaney

ISBN: 978-1118098615