The accountant for Lucky Corporation has developed the following information for the company's defined-benefit pension plan for 2018: $1,000,000 500,000 1,840,000 250,000 120,000 Service cost Actual return on plan assets Annual contribution to the plan Amortization of prior service cost Benefits paid to retirees Settlement rate 10% Expected rate of return on plan assets 8% The accumulated benefit obligation at December 31, 2018, amounted to $6,500,000. Instructions (a) 2018. Indicate (credit) entries by parentheses. Calculated amounts should be supported. An excel workbook with the pension worksheet has is in the Exam Folder. (b) Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2018. Using the above information for Lucky Corporation, complete a pension work sheet for
The accountant for Lucky Corporation has developed the following information for the company's defined-benefit pension plan for 2018: $1,000,000 500,000 1,840,000 250,000 120,000 Service cost Actual return on plan assets Annual contribution to the plan Amortization of prior service cost Benefits paid to retirees Settlement rate 10% Expected rate of return on plan assets 8% The accumulated benefit obligation at December 31, 2018, amounted to $6,500,000. Instructions (a) 2018. Indicate (credit) entries by parentheses. Calculated amounts should be supported. An excel workbook with the pension worksheet has is in the Exam Folder. (b) Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2018. Using the above information for Lucky Corporation, complete a pension work sheet for
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 7E
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Question
Journal part B is more important ! So part B solve please
Transcribed Image Text:The accountant for Lucky Corporation has developed the following information for the company's
defined-benefit pension plan for 2018:
$1,000,000
500,000
1,840,000
250,000
120,000
10%
Service cost
Actual return on plan assets
Annual contribution to the plan
Amortization of prior service cost
Benefits paid to retirees
Settlement rate
Expected rate of return on plan assets
8%
The accumulated benefit obligation at December 31, 2018, amounted to $6,500,000.
Instructions
(a)
2018. Indicate (credit) entries by parentheses. Calculated amounts should be supported. An
excel workbook with the pension worksheet has is in the Exam Folder.
(b) Prepare the journal entry to reflect the accounting for the company's pension plan for the
year ending December 31, 2018.
Using the above information for Lucky Corporation, complete a pension work sheet for
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