George Corporation has a defined benefit pension plan for its employees. The following 20X1: PBO at 1/1 $930,000 204,000 196,000 30,000 130,000 880,000 76,000 Payments made to retirees at 12/31 Service cost Actual return on plan assets Plan contributions at 12/31 Fair value of plan assets at 12/31 Amortization of prior service cost Discount rate 10%
George Corporation has a defined benefit pension plan for its employees. The following 20X1: PBO at 1/1 $930,000 204,000 196,000 30,000 130,000 880,000 76,000 Payments made to retirees at 12/31 Service cost Actual return on plan assets Plan contributions at 12/31 Fair value of plan assets at 12/31 Amortization of prior service cost Discount rate 10%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:George Corporation has a defined benefit pension plan for its employees. The following information is available for
20X1:
$930,000
204,000
196,000
PBO at 1/1
Payments made to retirees at 12/31
Service cost
30,000
130,000
880,000
76,000
10%
Actual return on plan assets
Plan contributions at 12/31
Fair value of plan assets at 12/31
Amortization of prior service cost
Discount rate
Expected rate of return on plan assets
6%
Required:
1. What was the January 1, 20X1, fair value of the plan assets?
2. What is the expected dollar return on plan assets for 20X1?
3. What amount of pension expense should George report for the year ended December 31, 20X1?
4. What was the dollar amount of loss (gain) on plan assets that was recognized in OCI during 20X1?
5. Prepare the journal entries to record pension expense, the contribution, and the OCI effects.
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- What was the dollar amount of loss (gain) on plan assets that was recognized in OCI during 20X1?
- Prepare the
journal entries to record pension expense, the contribution, and the OCI effects.
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