Fountain Limited sponsors a defined-benefit pension plan for its employees. On January 1,2020 the following balances related to this plan Plan Assets at fair value 450,000 Defined Benefit Obligation 600,000 As a result of the operations of the plan during 2020, the actuary provided the following additional data at December 31,2020. Service Cost for 2020 75,000 Actual return on plan assets in 2020 45,000 Past service cost, effective Jan 01 2020 120,000 Contributions in 2020 115,000 Benefits paid to retirees in 2020 70,000 Discount Rate 8 % Average remaining service life of active employees 35 years Required: a. Compute pension expense for Howard Corp. for the year 2020 by preparing a pension worksheet. b. Prepare the journal en
Fountain Limited sponsors a defined-benefit pension plan for its employees. On January 1,2020 the following
balances related to this plan
Plan Assets at fair value 450,000
Defined Benefit Obligation 600,000
As a result of the operations of the plan during 2020, the actuary provided the following additional data at
December 31,2020.
Service Cost for 2020 75,000
Actual return on plan assets in 2020 45,000
Past service cost, effective Jan 01 2020 120,000
Contributions in 2020 115,000
Benefits paid to retirees in 2020 70,000
Discount Rate 8 %
Average remaining service life of active
employees
35 years
Required:
a. Compute pension expense for Howard Corp. for the year 2020 by preparing a pension worksheet.
b. Prepare the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
