At January 1, 2025, Henry Company had plan assets of $280,000 and a projected benefit obligation of the same amount. During 2025, service cost was $27,500, the settlement rate was 10%, actual and expected return on plan assets were $25,000, contributions were $20,000, and benefits paid were $17,500. Instructions a) Prepare a pension worksheet for 2025. b) Prepare the related journal entry.
At January 1, 2025, Henry Company had plan assets of $280,000 and a projected benefit obligation of the same amount. During 2025, service cost was $27,500, the settlement rate was 10%, actual and expected return on plan assets were $25,000, contributions were $20,000, and benefits paid were $17,500. Instructions a) Prepare a pension worksheet for 2025. b) Prepare the related journal entry.
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 6MC
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Question
Ee 11.
![At January 1, 2025, Henry Company had plan assets of $280,000 and a projected
benefit obligation of the same amount. During 2025, service cost was $27,500, the
settlement rate was 10%, actual and expected return on plan assets were $25,000,
contributions were $20,000, and benefits paid were $17,500.
Instructions
a) Prepare a pension worksheet for 2025.
b) Prepare the related journal entry.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f160f1b-d125-4cf2-9b01-27d1eef1b8b8%2Faa41474e-b8cc-4b9d-b58b-f39218c9437c%2Fakyerx9_processed.png&w=3840&q=75)
Transcribed Image Text:At January 1, 2025, Henry Company had plan assets of $280,000 and a projected
benefit obligation of the same amount. During 2025, service cost was $27,500, the
settlement rate was 10%, actual and expected return on plan assets were $25,000,
contributions were $20,000, and benefits paid were $17,500.
Instructions
a) Prepare a pension worksheet for 2025.
b) Prepare the related journal entry.
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