Buhl 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 Defined benefit obligation 600,000 Pension asset/liability 120,000 As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost for 2020 $90,000 Discount rate, 6% Actual return on plan assets in 2020 55,000 Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions 76,000 Contributions in 2020 99,000 Benefits paid retirees in 2020 85,000 Instructions a. Using the data above, compute pension expense for Buhl Corp. for the year 2020 by preparing a pension worksheet. b. Prepare the journal entry for pension expense for 2020.
Buhl 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 Defined benefit obligation 600,000 Pension asset/liability 120,000 As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost for 2020 $90,000 Discount rate, 6% Actual return on plan assets in 2020 55,000 Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions 76,000 Contributions in 2020 99,000 Benefits paid retirees in 2020 85,000 Instructions a. Using the data above, compute pension expense for Buhl Corp. for the year 2020 by preparing a pension worksheet. b. Prepare the journal entry for pension expense for 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Buhl 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
|
| Defined benefit obligation |
600,000
|
| Pension asset/liability |
120,000
|
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
| Service cost for 2020 |
$90,000
|
| Discount rate, 6% |
|
| Actual return on plan assets in 2020 |
55,000
|
| Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions |
76,000
|
| Contributions in 2020 |
99,000
|
| Benefits paid retirees in 2020 |
85,000
|
Instructions
a. Using the data above, compute pension expense for Buhl Corp. for the year 2020 by preparing a pension worksheet.
b. Prepare the
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