Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following balances relate to this plan.
Plan assets.........................................$480,000
Defined benefit obligation.......................600,000
Pension asset/liability.............................120,000
Accumulated OCI.......................................-0-
As a result of the operation of the plan during 2019, the following additional data are provided by the actuary.
Service cost for 2019................................................................................................$90,000
Discount (interest) rate.....................................................................................................6%
Actual return on plan assets in 2019................................................................................55,000
Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions...76,000
Contributions in 2019.................................................................................................99,000
Benefits paid retirees in 2019........................................................................................85,000
Instructions
a. Using the data above, compute pension expense for Webb Corp. for the year 2019 by preparing a pension worksheet.
b. Prepare the journal entry for pension expense for 2019.