Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that the projected level of earnings on plan investments is $184,300, the service cost component is $272,500, and interest on the pension liability is $160,000 for the year. The City is amortizing a deferred outflow resulting from a change in plan assumptions from a prior year in the amount of $5,900 per year. Requried: Prepare journal entries to record annual pension expenses for the enterprise fund. Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.

Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that the projected level of earnings on plan investments is $184,300, the service cost component is $272,500, and interest on the pension liability is $160,000 for the year. The City is amortizing a deferred outflow resulting from a change in plan assumptions from a prior year in the amount of $5,900 per year. Requried: Prepare journal entries to record annual pension expenses for the enterprise fund. Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 24E

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Prepare journal entries to record annual pension expenses for the enterprise fund.

Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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