Citroen Company provides the following information about its defined benefit pension plan for the year 2021. Service cost $79,000 Contribution to the plan 92,000 Prior service cost amortization 9,500 Actual and expected return on plan assets 61,000 Benefits paid 50,000 Plan assets at January 1, 2021 720,000 Projected benefit obligation on January 1, 2021 770,000 Accumulated OCI (PSC) on January 1, 2021 120,000 Interest/discount (settlement) rate 9% Prepare a pension worksheet. Prepare the journal entry recording pension expense.
Citroen Company provides the following information about its defined benefit pension plan for the year 2021. Service cost $79,000 Contribution to the plan 92,000 Prior service cost amortization 9,500 Actual and expected return on plan assets 61,000 Benefits paid 50,000 Plan assets at January 1, 2021 720,000 Projected benefit obligation on January 1, 2021 770,000 Accumulated OCI (PSC) on January 1, 2021 120,000 Interest/discount (settlement) rate 9% Prepare a pension worksheet. Prepare the journal entry recording pension expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Citroen Company provides the following information about its defined benefit pension plan for the year 2021.
|
Service cost |
$79,000 |
|
Contribution to the plan |
92,000 |
|
Prior service cost amortization |
9,500 |
|
Actual and expected return on plan assets |
61,000 |
|
Benefits paid |
50,000 |
|
Plan assets at January 1, 2021 |
720,000 |
|
Projected benefit obligation on January 1, 2021 |
770,000 |
|
Accumulated OCI (PSC) on January 1, 2021 |
120,000 |
|
Interest/discount (settlement) rate |
9% |
- Prepare a pension worksheet.
- Prepare the journal entry recording pension expense.
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