a. Compute pension expense for Howard Corp. for the year 2020 by preparing a pension worksheet.Prepare the journal entries relating to pension for the year 2020. ( Fountain Limited sponsors a defined-benefit pension plan for its employees. On January 1,2020 the followingbalances related to this planPlan Assets at fair valueDefined Benefit Obligation450,000600,000As a result of the operations of the plan during 2020, the actuary provided the following additional data atDecember 31,2020.75,00045,000120,000115,00070,000Service Cost for 2020Actual return on plan assets in 2020Past service cost, effective Jan 01 2020Contributions in 2020Benefits paid to retirees in 2020Discount Rate8 %Average remaining service life of active 35 yearsemployees

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Compute pension expense for Howard Corp. for the year 2020 by preparing a pension worksheet. Prepare the journal entries relating to pension for the year 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

100%

a. Compute pension expense for Howard Corp. for the year 2020 by preparing a pension worksheet.

Prepare the journal entries relating to pension for the year 2020. (

Fountain Limited sponsors a defined-benefit pension plan for its employees. On January 1,2020 the following
balances related to this plan
Plan Assets at fair value
Defined Benefit Obligation
450,000
600,000
As a result of the operations of the plan during 2020, the actuary provided the following additional data at
December 31,2020.
75,000
45,000
120,000
115,000
70,000
Service Cost for 2020
Actual return on plan assets in 2020
Past service cost, effective Jan 01 2020
Contributions in 2020
Benefits paid to retirees in 2020
Discount Rate
8 %
Average remaining service life of active 35 years
employees

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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