On December 31, 2019, Johnson Company accumulated the following information for 2019 in regard to its defined benefit pension plan:Service cost$113,230Interest cost on projected benefit obligation11,970Expected return on plan assets11,600Amortization of prior service cost2,020 On its December 31, 2018, balance sheet, Johnson had reported an accrued/prepaid pension cost liability of $12,880.Required:1.Compute the amount of Johnson’s pension expense for 2019.2.Prepare all the journal entries related to Johnson’s pension plan for 2019 if it funds the pension plan in the amount of (a) $115,620, (b) $114,620, and (c) $119,430.3.Next Level Assuming Johnson’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $60,150 what would be its ending balance?4.Next Level How much would Johnson need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $5,120 at the end of 2019?

Answer 1: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answeredAnswer 2:Answer 3 Ending Balance of Accumulated Other Comprehensive Income: Prior Service Cost Balance=Beginning Balance of Accumulated Other Comprehensive Income: Prior Service Cost Balance–Amortization of Prior Service cost=$60,150-$2,020= $58,130

Answered: On December 31, 2019, Johnson Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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On December 31, 2019, Johnson Company accumulated the following information for 2019 in regard to its defined benefit pension plan:

Service cost	$113,230
Interest cost on projected benefit obligation	11,970
Expected return on plan assets	11,600
Amortization of prior service cost	2,020

On its December 31, 2018, balance sheet, Johnson had reported an accrued/prepaid pension cost liability of $12,880.

Required:

1.	Compute the amount of Johnson’s pension expense for 2019.
2.	Prepare all the journal entries related to Johnson’s pension plan for 2019 if it funds the pension plan in the amount of (a) $115,620, (b) $114,620, and (c) $119,430.
3.	Next Level Assuming Johnson’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $60,150 what would be its ending balance?
4.	Next Level How much would Johnson need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $5,120 at the end of 2019?

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