Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, Pension Expense 121800 2020 Pension Asset/Liability Other Comprehensive Income (PSC) 10500 Other Comprehensive Income (G/L) Cash 120750
Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, Pension Expense 121800 2020 Pension Asset/Liability Other Comprehensive Income (PSC) 10500 Other Comprehensive Income (G/L) Cash 120750
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter9: Operating Activities
Section: Chapter Questions
Problem 11QE
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Question
Compute pension expense for 2020 and 2021.
Pension expense for 2020 |
121,800
|
|
Pension expense for 2021 | 159,600 |
![Splish Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020
and 2021.
2020
2021
Plan assets (fair value), December 31
$733,950
$891,450
Projected benefit obligation, January 1
735,000
840,000
Pension asset/liability, January 1
147,000
Cr.
?
Prior service cost, January 1
262,500
252,000
Service cost
63,000
94,500
Actual and expected return on plan assets
25,200
31,500
Amortization of prior service cost
10,500
12,600
Contributions (funding)
120,750
126,000
Accumulated benefit obligation, December 31
525,000
577,500
Interest/settlement rate
10 %
10 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b898367-3f8c-40b0-ba44-c52f92ff966a%2F6548dc91-9047-4df0-bac5-27103db0e524%2Ftivboob_processed.png&w=3840&q=75)
Transcribed Image Text:Splish Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020
and 2021.
2020
2021
Plan assets (fair value), December 31
$733,950
$891,450
Projected benefit obligation, January 1
735,000
840,000
Pension asset/liability, January 1
147,000
Cr.
?
Prior service cost, January 1
262,500
252,000
Service cost
63,000
94,500
Actual and expected return on plan assets
25,200
31,500
Amortization of prior service cost
10,500
12,600
Contributions (funding)
120,750
126,000
Accumulated benefit obligation, December 31
525,000
577,500
Interest/settlement rate
10 %
10 %
![Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. (Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31,
Pension Expense
121800
2020
Pension Asset/Liability
Other Comprehensive Income (PSC)
10500
Other Comprehensive Income (G/L)
Cash
120750](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b898367-3f8c-40b0-ba44-c52f92ff966a%2F6548dc91-9047-4df0-bac5-27103db0e524%2Fdux79oe_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. (Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31,
Pension Expense
121800
2020
Pension Asset/Liability
Other Comprehensive Income (PSC)
10500
Other Comprehensive Income (G/L)
Cash
120750
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