On January 1, 2020, Spoon Co. had the following balances: Projected benefit obligation $7,300,000 Fair value of plan assets 7,200,000 Other data related to the pension plan for 2020: Service cost 315,000 Contributions to the plan Benefits paid 350,000 Interest rate 6% Actual return 432,000 A) Prepare a pension worksheet. You must compute pension expense and ending balances for PBO & PA. B) Prepare the journal entry to record pension expense.. Show all computations for A & B. 360,000

On January 1, 2020, Spoon Co. had the following balances: Projected benefit obligation $7,300,000 Fair value of plan assets 7,200,000 Other data related to the pension plan for 2020: Service cost 315,000 Contributions to the plan Benefits paid 350,000 Interest rate 6% Actual return 432,000 A) Prepare a pension worksheet. You must compute pension expense and ending balances for PBO & PA. B) Prepare the journal entry to record pension expense.. Show all computations for A & B. 360,000

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 2MC

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