Presented below is information related to Mikell Department Stores, Inc. pension plan for 2022. Service cost 375,000 Funding contribution for 2022 300,000 Settlement rate used in actuarial computation 8% Expected and actual return on plan assets 7% Amortization of Prior Service Costs 70,000 Amortization of net gains 35,000 Projected benefit obligation (at beginning of year) 420,000 Market-related (and fair) value of plan assets (at beginning of year) 380,000 No benefits were paid during 2022. Required: (a) Compute the amount of pension expense to be reported for 2022. (b) Prepare the journal entry to record pension expense for 2022.
Presented below is information related to Mikell Department Stores, Inc. pension plan for 2022. Service cost 375,000 Funding contribution for 2022 300,000 Settlement rate used in actuarial computation 8% Expected and actual return on plan assets 7% Amortization of Prior Service Costs 70,000 Amortization of net gains 35,000 Projected benefit obligation (at beginning of year) 420,000 Market-related (and fair) value of plan assets (at beginning of year) 380,000 No benefits were paid during 2022. Required: (a) Compute the amount of pension expense to be reported for 2022. (b) Prepare the journal entry to record pension expense for 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
- Presented below is information related to Mikell Department Stores, Inc. pension plan for 2022.
|
Service cost |
|
375,000 |
|
Funding contribution for 2022 |
|
300,000 |
|
Settlement rate used in actuarial computation |
|
8% |
|
Expected and actual return on plan assets |
|
7% |
|
Amortization of Prior Service Costs |
|
70,000 |
|
Amortization of net gains |
|
35,000 |
|
Projected benefit obligation (at beginning of year) |
|
420,000 |
|
Market-related (and fair) value of plan assets (at beginning of year) |
|
380,000 |
No benefits were paid during 2022.
Required:
(a) Compute the amount of pension expense to be reported for 2022.
(b) Prepare the
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