Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 600,000 Pension asset/liability 120,000 Accumulated OCI (PSC) 100,000 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $90,000 Settlement rate, 9% Actual return on plan assets 55,000 Amortization of prior service cost 19,000 Expected return on plan assets 52,000 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,000 Contributions 99,000 Benefits paid retirees 85,000 Instructions Using the data above, compute pension expense for Webb Corp. for the year 2020 by preparing a pension worksheet. Prepare the journal entry for pension expense for 2020.
Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 600,000 Pension asset/liability 120,000 Accumulated OCI (PSC) 100,000 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $90,000 Settlement rate, 9% Actual return on plan assets 55,000 Amortization of prior service cost 19,000 Expected return on plan assets 52,000 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,000 Contributions 99,000 Benefits paid retirees 85,000 Instructions Using the data above, compute pension expense for Webb Corp. for the year 2020 by preparing a pension worksheet. Prepare the journal entry for pension expense for 2020.
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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Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.
| Plan assets | $480,000 | |
| Projected benefit obligation | 600,000 | |
| Pension asset/liability | 120,000 | |
| Accumulated OCI (PSC) | 100,000 Dr. |
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
| Service cost | $90,000 | |
| Settlement rate, 9% | ||
| Actual return on plan assets | 55,000 | |
| Amortization of prior service cost | 19,000 | |
| Expected return on plan assets | 52,000 | |
| Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions |
76,000 | |
| Contributions | 99,000 | |
| Benefits paid retirees | 85,000 |
Instructions
- Using the data above, compute pension expense for Webb Corp. for the year 2020 by preparing a pension worksheet.
- Prepare the
journal entry for pension expense for 2020.
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