Pension data for the Jones Company 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, $200,000 January 1: PBO $1,400,000 ABO $1,000,000 Plan assets $1,500,000 Amort of prior service cost $20,000 Amort of net gaint $4,000 December 31: Cash contributions to pension funds $220,000 Benefit payments to retirees $240,000 Required: 1. Determine the pension expense for the year. 2. Prepare the journal entries to record: 1) Pension expense 2) Contribution 3) Benefit payment 4) Any gain or loss

Pension data for the Jones Company 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, $200,000 January 1: PBO $1,400,000 ABO $1,000,000 Plan assets $1,500,000 Amort of prior service cost $20,000 Amort of net gaint $4,000 December 31: Cash contributions to pension funds $220,000 Benefit payments to retirees $240,000 Required: 1. Determine the pension expense for the year. 2. Prepare the journal entries to record: 1) Pension expense 2) Contribution 3) Benefit payment 4) Any gain or loss

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 3RE: Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn...

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