Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year: Projected benefit obligation Balance, January 1 $ 150,000,000 Service cost 25,000,000 Interest cost 15,000,000 Benefits paid (12,000,000 ) Balance, December 31 $ 178,000,000 Plan assets Balance, January 1 $ 90,000,000 Actual return on plan assets 11,000,000 Contribution 23,000,000 Benefits paid (12,000,000 ) Balance, December 31 $ 112,000,000 The expected long-term return on plan assets is 10%. There were no other relevant data for the year. Required: 1. Prepare the journal entries to record the pension expense and funding for the year.
Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year: Projected benefit obligation Balance, January 1 $ 150,000,000 Service cost 25,000,000 Interest cost 15,000,000 Benefits paid (12,000,000 ) Balance, December 31 $ 178,000,000 Plan assets Balance, January 1 $ 90,000,000 Actual return on plan assets 11,000,000 Contribution 23,000,000 Benefits paid (12,000,000 ) Balance, December 31 $ 112,000,000 The expected long-term return on plan assets is 10%. There were no other relevant data for the year. Required: 1. Prepare the journal entries to record the pension expense and funding for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year:
| Projected benefit obligation | |||
| Balance, January 1 | $ | 150,000,000 | |
| Service cost | 25,000,000 | ||
| Interest cost | 15,000,000 | ||
| Benefits paid | (12,000,000 | ) | |
| Balance, December 31 | $ | 178,000,000 | |
| Plan assets | |||
| Balance, January 1 | $ | 90,000,000 | |
| Actual return on plan assets | 11,000,000 | ||
| Contribution | 23,000,000 | ||
| Benefits paid | (12,000,000 | ) | |
| Balance, December 31 | $ | 112,000,000 | |
The expected long-term return on plan assets is 10%. There were no other relevant data for the year.
Required:
1. Prepare the
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