E20-3 (Preparation of pension Worksheet) Verde Company provides the following information about its defined benefit pension plan for the year 2017. Service Cost $90,000 Contribution to the plan $105,000 Prior service cost amortization $10,000 Actual and expected return on plan assets $64,000 Benefits paid $40,000 Plan assets at January 1, 2017 $640,000 Projected benefit obligation at Jaunary 1, 2017 $700,000 Accumulated OCI (PSC) at January 1, 2017 $150,000 Interest/discount(settlement) rate 10% Instructions: Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording pension expense.
E20-3 (Preparation of pension Worksheet) Verde Company provides the following information about its defined benefit pension plan for the year 2017. Service Cost $90,000 Contribution to the plan $105,000 Prior service cost amortization $10,000 Actual and expected return on plan assets $64,000 Benefits paid $40,000 Plan assets at January 1, 2017 $640,000 Projected benefit obligation at Jaunary 1, 2017 $700,000 Accumulated OCI (PSC) at January 1, 2017 $150,000 Interest/discount(settlement) rate 10% Instructions: Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording pension expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E20-3 (Preparation of pension Worksheet) Verde Company provides the following information about its defined benefit pension plan for the year 2017.
Service Cost $90,000
Contribution to the plan $105,000
Prior service cost amortization $10,000
Actual and expected return on plan assets $64,000
Benefits paid $40,000
Plan assets at January 1, 2017 $640,000
Projected benefit obligation at Jaunary 1, 2017 $700,000
Accumulated OCI (PSC) at January 1, 2017 $150,000
Interest/discount(settlement) rate 10%
Instructions:
Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the
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