Sage Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) $25,600 Cr. Accumulated benefit obligation (December 31) 400,600 Actual and expected return on plan assets 10,400 Contributions (funding) in 2020 148,800 Fair value of plan assets (December 31) 796,000 Settlement rate 10 % Projected benefit obligation (January 1) 698,500 Service cost 79,600 (a) Correct answer icon Your answer is correct. Compute pension expense. Pension expense for 2020 $ Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $36,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2020. Sage Company Income Statement (Partial) $ $ Sage Company Balance Sheet (Partial)
Sage Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) $25,600 Cr. Accumulated benefit obligation (December 31) 400,600 Actual and expected return on plan assets 10,400 Contributions (funding) in 2020 148,800 Fair value of plan assets (December 31) 796,000 Settlement rate 10 % Projected benefit obligation (January 1) 698,500 Service cost 79,600 (a) Correct answer icon Your answer is correct. Compute pension expense. Pension expense for 2020 $ Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $36,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2020. Sage Company Income Statement (Partial) $ $ Sage Company Balance Sheet (Partial)
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 6E
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Question
Sage Company provides the following selected information related to its defined benefit pension plan for 2020.
| Pension asset/liability (January 1) | $25,600 | Cr. | |
| Accumulated benefit obligation (December 31) | 400,600 | ||
| Actual and expected return on plan assets | 10,400 | ||
| Contributions (funding) in 2020 | 148,800 | ||
| Fair value of plan assets (December 31) | 796,000 | ||
| Settlement rate | 10 | % | |
| Projected benefit obligation (January 1) | 698,500 | ||
| Service cost | 79,600 |
(a)
Correct answer icon
Your answer is correct.
Compute pension expense.
Prepare thejournal entry to record pension expense and the employer’s contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $36,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
| Pension expense for 2020 |
$
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Prepare the
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Account Titles and Explanation
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Debit
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Credit
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eTextbook and Media
List of Accounts
Attempts: 1 of 3 used
(b)
Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2020.
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Sage Company
Income Statement (Partial) |
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$
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$
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Sage Company
Balance Sheet (Partial) |
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$
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