The following information is available for the pension plan of Wildhorse Company for the year 2020. Actual and expected return on plan assets $ 15,800 Benefits paid to retirees 39,500 Contributions (funding) 88,700 Interest/discount rate 11 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 548,000 Service cost 60,000
The following information is available for the pension plan of Wildhorse Company for the year 2020. Actual and expected return on plan assets $ 15,800 Benefits paid to retirees 39,500 Contributions (funding) 88,700 Interest/discount rate 11 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 548,000 Service cost 60,000
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 4E
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Question
The following information is available for the pension plan of Wildhorse Company for the year 2020.
| Actual and expected return on plan assets | $ 15,800 | ||
| Benefits paid to retirees | 39,500 | ||
| Contributions (funding) | 88,700 | ||
| Interest/discount rate | 11 | % | |
| Prior service cost amortization | 7,600 | ||
| Projected benefit obligation, January 1, 2020 | 548,000 | ||
| Service cost | 60,000 |
(a)
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Your answer is correct.
Compute pension expense for the year 2020.
| Pension expense for 2020 |
$enter pension expense for 2017 in dollars
|
eTextbook and Media
List of Accounts
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(b)
Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (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.)
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Account Titles and Explanation
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Debit
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Credit
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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|
enter an account title
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enter a debit amount
|
enter a credit amount
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eTextbook and Media
List of Accounts
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