(Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2020. Actual and expected return on plan assets $ 15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Interest/discount rate 10% Prior service cost amortization 8,000 Projected benefit obligation, January 1, 2020 500,000 Service cost 60,000 Instructions a. Compute pension expense for the year 2020. b. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020.
(Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2020. Actual and expected return on plan assets $ 15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Interest/discount rate 10% Prior service cost amortization 8,000 Projected benefit obligation, January 1, 2020 500,000 Service cost 60,000 Instructions a. Compute pension expense for the year 2020. b. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2020.
| Actual and expected return on plan assets |
$ 15,000
|
| Benefits paid to retirees |
40,000
|
| Contributions (funding) |
90,000
|
| Interest/discount rate |
10%
|
| Prior service cost amortization |
8,000
|
| Projected benefit obligation, January 1, 2020 |
500,000
|
| Service cost |
60,000
|
Instructions
a. Compute pension expense for the year 2020.
b. Prepare the
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