Pension data for Shalom Inc. include the following for the current calendar year: Discount rate, 8% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, $400,000 January 1: PBO 3,000,000 ABO 2,000,000 Plan assets 3,200,000 Amortization of prior service cost 30,000 Amortization of net gain 7,000 December 31: Cash contributions to pension fund $275,000 Benefit payments to retirees 310,000 Required: 1) Determine pension expense for the year. Show your computations. No credit if not. 2) Prepare the journal entries to record the following: a) Pension Expense b) Contribution c) Benefit Payment d) Any Gain or Loss
Pension data for Shalom Inc. include the following for the current calendar year:
Discount
Expected return on plan assets, 10%
Actual return on plan assets, 9%
Service cost, $400,000
|
January 1: |
|
|
PBO |
3,000,000 |
|
ABO |
2,000,000 |
|
Plan assets |
3,200,000 |
|
Amortization of prior service cost |
30,000 |
|
Amortization of net gain |
7,000 |
|
December 31: |
|
|
Cash contributions to pension fund |
$275,000 |
|
Benefit payments to retirees |
310,000 |
Required:
1) Determine pension expense for the year. Show your computations. No credit if not.
2) Prepare the
a) Pension Expense
b) Contribution
c) Benefit Payment
d) Any Gain or Loss
20) Broncos Co. reports pretax financial income of $
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