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1- Compute pension expense for 2019 Service cost Interest cost Actual return - plant assets +/- unexpected G/L = Expected return PSC amortization G/L amortization Total pension expense 2. Prepare the journal entry to pension expense for 2019. Only use the following accounts: Cash, Pension expense, OCI- PSC, OCI-G/L, Pension asset/liability. (if no entry is required, write N/A)

1- Compute pension expense for 2019 Service cost Interest cost Actual return - plant assets +/- unexpected G/L = Expected return PSC amortization G/L amortization Total pension expense 2. Prepare the journal entry to pension expense for 2019. Only use the following accounts: Cash, Pension expense, OCI- PSC, OCI-G/L, Pension asset/liability. (if no entry is required, write N/A)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
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Tommy Inc. sponsors a defined-benefit pension plan. The corporation's actuary provides the following information about the plan. Projected benefit obligation Plan assets Accumulated OCI (PSC)-Dr. Accumulated OCI (G/L)-Dr. Settlement & expected return rate Service cost Contributions (funding) Actual return on plan assets Benefits paid to retirees Average service life of all covered employees in years 1-Jan-2019 31-Dec-2019 810,000 740,000 312,000 120,000 ? 8% 155,000 200,500 54,400 180,000 10 1- Compute pension expense for 2019 Service cost Interest cost Actual return - plant assets +/- unexpected G/L = Expected return PSC amortization G/L amortization Total pension expense 2. Prepare the journal entry to pension expense for 2019. Only use the following accounts: Cash, Pension expense, OCI- PSC, OCI-G/L, Pension asset/liability. (if no entry is required, write N/A)
Transcribed Image Text:Tommy Inc. sponsors a defined-benefit pension plan. The corporation's actuary provides the following information about the plan. Projected benefit obligation Plan assets Accumulated OCI (PSC)-Dr. Accumulated OCI (G/L)-Dr. Settlement & expected return rate Service cost Contributions (funding) Actual return on plan assets Benefits paid to retirees Average service life of all covered employees in years 1-Jan-2019 31-Dec-2019 810,000 740,000 312,000 120,000 ? 8% 155,000 200,500 54,400 180,000 10 1- Compute pension expense for 2019 Service cost Interest cost Actual return - plant assets +/- unexpected G/L = Expected return PSC amortization G/L amortization Total pension expense 2. Prepare the journal entry to pension expense for 2019. Only use the following accounts: Cash, Pension expense, OCI- PSC, OCI-G/L, Pension asset/liability. (if no entry is required, write N/A)
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