The following facts apply to the pension plan of Sheridan Inc. for the year 2020. Sheridan applies ASPE. Plan assets, January 1, 2020 $528,000 Defined benefit obligation, funding basis, January 1, 2020 427,000 Defined benefit obligation, accounting basis, January 1, 2020 528,000 Discount/interest rate 8.50% Annual pension service cost 40,600 Contributions 31,700 Actual return on plan assets 53,930 Benefits paid to retirees 33,500 Calculate pension expense for the year 2020, and provide the entries to recognize the expense and contributions for the year assuming that Sheridan has chosen the funding measure of its defined benefit obligation as its accounting policy choice. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Pension expense $enter Pension expense in dollars Date Account Titles and Explanation Debit Credit December 31, 2020 enter an account title to record pension expense Pension Contributions PayableCashNet Defined Benefit Liability/AssetPension ExpenseContributions enter a debit amount enter a credit amount enter an account title to record pension expense Pension Contributions PayableNet Defined Benefit Liability/AssetPension ExpenseContributionsCash enter a debit amount enter a credit amount (To record pension expense.) December 31, 2020 enter an account title to record contributions to the pension fund Pension Contributions PayableNet Defined Benefit Liability/AssetCashContributionsPension Expense enter a debit amount enter a credit amount enter an account title to record contributions to the pension fund ContributionsNet Defined Benefit Liability/AssetCashPension Contributions PayablePension Expense enter a debit amount enter a credit amount
The following facts apply to the pension plan of Sheridan Inc. for the year 2020. Sheridan applies ASPE. Plan assets, January 1, 2020 $528,000 Defined benefit obligation, funding basis, January 1, 2020 427,000 Defined benefit obligation, accounting basis, January 1, 2020 528,000 Discount/interest rate 8.50% Annual pension service cost 40,600 Contributions 31,700 Actual return on plan assets 53,930 Benefits paid to retirees 33,500 Calculate pension expense for the year 2020, and provide the entries to recognize the expense and contributions for the year assuming that Sheridan has chosen the funding measure of its defined benefit obligation as its accounting policy choice. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Pension expense $enter Pension expense in dollars Date Account Titles and Explanation Debit Credit December 31, 2020 enter an account title to record pension expense Pension Contributions PayableCashNet Defined Benefit Liability/AssetPension ExpenseContributions enter a debit amount enter a credit amount enter an account title to record pension expense Pension Contributions PayableNet Defined Benefit Liability/AssetPension ExpenseContributionsCash enter a debit amount enter a credit amount (To record pension expense.) December 31, 2020 enter an account title to record contributions to the pension fund Pension Contributions PayableNet Defined Benefit Liability/AssetCashContributionsPension Expense enter a debit amount enter a credit amount enter an account title to record contributions to the pension fund ContributionsNet Defined Benefit Liability/AssetCashPension Contributions PayablePension Expense enter a debit amount enter a credit amount
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 11E
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Question
The following facts apply to the pension plan of Sheridan Inc. for the year 2020. Sheridan applies ASPE.
Plan assets, January 1, 2020 | $528,000 | ||
Defined benefit obligation, funding basis, January 1, 2020 | 427,000 | ||
Defined benefit obligation, accounting basis, January 1, 2020 | 528,000 | ||
Discount/interest rate | 8.50% | ||
Annual pension service cost | 40,600 | ||
Contributions | 31,700 | ||
Actual return on plan assets | 53,930 | ||
Benefits paid to retirees | 33,500 |
Calculate pension expense for the year 2020, and provide the entries to recognize the expense and contributions for the year assuming that Sheridan has chosen the funding measure of its defined benefit obligation as its accounting policy choice. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Pension expense | $enter Pension expense in dollars |
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
December 31, 2020
|
enter an account title to record pension expense Pension Contributions PayableCashNet Defined Benefit Liability/AssetPension ExpenseContributions
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record pension expense Pension Contributions PayableNet Defined Benefit Liability/AssetPension ExpenseContributionsCash
|
enter a debit amount
|
enter a credit amount
|
|
(To record pension expense.) | |||
December 31, 2020
|
enter an account title to record contributions to the pension fund Pension Contributions PayableNet Defined Benefit Liability/AssetCashContributionsPension Expense
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record contributions to the pension fund ContributionsNet Defined Benefit Liability/AssetCashPension Contributions PayablePension Expense
|
enter a debit amount
|
enter a credit amount
|
|
(To record contributions to the pension fund.) |
eTextbook and Media
Calculate pension expense if IFRS had been applied to this plan.
Pension expense | $enter Pension expense in dollars |
eTextbook and Media
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