General Accounting Grayson Corporation provides the following information about itsdefined benefit pension plan for the year 2023:•••Service cost: $120,000Contribution to the plan: $135,000Benefits paid: $50,000Plan assets at January 1, 2023: $800,000Defined benefit obligation at January 1, 2023: $900,000Discount (interest) rate: 8%Compute the pension expense for the year 2023.

Step 1:First, calculate the interest cost: Interest cost = Defined benefit obligation Jan 1 *…

Answered: Grayson Corporation provides the…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6MC

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Sandhill Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2025 Projected benefit obligation at January 1, 2025 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate Compute the pension expense for the year 2025. Pension expense for 2025 $ $91,600 104,400 10,800 64,600 40,300 650,000 692,000 150,000 11%
Wildhorse Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2025 Projected benefit obligation at January 1, 2025 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate Compute the pension expense for the year 2025. Pension expense for 2025 $89,400 105,700 10,800 64,500 40,200 640,200 710,100 152,200 10%
Cullumber Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2025 Projected benefit obligation at January 1, 2025 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate Compute the pension expense for the year 2025. Pension expense for 2025 $91,100 103,300 9,400 65,100 40,500 650,700 694,300 151,900 10%
The following information is available for the pension plan of Cullumber Company for the year 2025. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2025 Service cost (a) Compute pension expense for the year 2025. Pension expense for 2025 $15,500 38,300 88,400 9% 8,500 550,000 61,100
Sunland Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2025 Projected benefit obligation at January 1, 2025 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate Compute the pension expense for the year 2025. +A Pension expense for 2025 $ $91,400 102,900 9,600 64,900 40,600 632,300 686,100 147,300 11%
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The following information is available for the pension plan of Pharoah Company for the year 2025. Actual and expected return on plan assets Benefits paid to retirees $13,800 38,400 Contributions (funding) Interest/discount rate 79,900 10% Prior service cost amortization 7,800 Projected benefit obligation, January 1, 2025 452,000 Service cost 54,700 (a) Your answer is correct. Compute pension expense for the year 2025. Pension expense for 2025 eTextbook and Media List of Accounts 93900 i Attemp (b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2025. (C titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" fo titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit

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