Macon, Inc. has a defined contribution pension plan and provides the following information for the year 2019: Pension liability at 1/1/2019, $35,000. Pension contributions made during the year, $48,000. Prior service cost balance at 1/1/2019, $30,000. Pension plan assets at 1/1/2019, $612,000. Pension benefits paid to retirees during 2019, $60,000. Settlement rate, 8%. Pension benefit obligation balance at 1/1/2019, $647,000. Service cost incurred during 2019, $72,000. Return of plan assets during 2019, $25,000. Amortization of prior service cost for 2019, $5,000. REQUIRED: Prepare a pension worksheet to be used to calculate pension expense, and prepare the appropriate journal entry to record the pension expense for 2019.

Macon, Inc. has a defined contribution pension plan and provides the following information for the year 2019: Pension liability at 1/1/2019, $35,000. Pension contributions made during the year, $48,000. Prior service cost balance at 1/1/2019, $30,000. Pension plan assets at 1/1/2019, $612,000. Pension benefits paid to retirees during 2019, $60,000. Settlement rate, 8%. Pension benefit obligation balance at 1/1/2019, $647,000. Service cost incurred during 2019, $72,000. Return of plan assets during 2019, $25,000. Amortization of prior service cost for 2019, $5,000. REQUIRED: Prepare a pension worksheet to be used to calculate pension expense, and prepare the appropriate journal entry to record the pension expense for 2019.

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 5E

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