Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) Accumulated benefit obligation (December 31) Actual and expected return on plan assets Contributions (funding) in 2020 Fair value of plan assets (December 31) Settlement rate Projected benefit obligation (January 1) Service cost (a) Your answer is correct. Compute pension expense. Pension expense for 2020 $ Account Titles and Explanation Pension Expense Pension Asset/Liability $27,200 Cr. Cash 403,300 11,000 150,600 794,200 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 10 % 696,900 79,420 138110 Debit 138110 12490 Credit 150,60

Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) Accumulated benefit obligation (December 31) Actual and expected return on plan assets Contributions (funding) in 2020 Fair value of plan assets (December 31) Settlement rate Projected benefit obligation (January 1) Service cost (a) Your answer is correct. Compute pension expense. Pension expense for 2020 $ Account Titles and Explanation Pension Expense Pension Asset/Liability $27,200 Cr. Cash 403,300 11,000 150,600 794,200 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 10 % 696,900 79,420 138110 Debit 138110 12490 Credit 150,60

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

Indicate the pension-related amounts that would be reported in the company's income statement and balance
sheet for 2020.
Operating Expenses
Pension Expense
Other Revenue / Expenses
Pension Expense
Kingbird Company
Income Statement (Partial)
For the Year Ended December 31, 2020
Liabilities
Pension Liability
4
LA
December 31, 2020
$
LA
$
Kingbird Company
Balance Sheet (Partial)
tA
"
138110
138110
14710

Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020.
Pension asset/liability (January 1)
Accumulated benefit obligation (December 31)
Actual and expected return on plan assets
Contributions (funding) in 2020
Fair value of plan assets (December 31)
Settlement rate
Projected benefit obligation (January 1)
Service cost
(a)
Your answer is correct.
Compute pension expense.
Pension expense for 2020 $
Account Titles and Explanation
Pension Expense
Pension Asset/Liability
$27,200 Cr.
403,300
11,000
150,600
794,200
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020.
Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (Credit account titles
are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts.)
Cash
10 %
696,900
79,420
138110
Debit
138110
12490
Credit
150,60

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