Sandhill Company provides the following selected information related to its defined benefit pension plan for 2025. Pension asset/liability (January 1) $25.500 Cr. Accumulated benefit obligation (December 31) 403,100 Actual and expected return on plan assets 9,000 Contributions (funding) in 2025 148,600 Fair value of plan assets (December 31) 795,800 Settlement rate 10% Projected benefit obligation (January 1) 702.800 Service cost 79.580 (a1) Your answer is correct. Compute pension expense. Pension expense for 2025 $ 140860 i Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2025. Preparation of a pension worksheet is not required. Benefits paid in 2025 were $39,100. (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. List all debit entries before credit entries.) Account Titles and Explanation Pension Expense Debit 140860 Credit Pension Asset/Liability Cash 7740 148600 Indicate the pension-related amounts that would be reported in the company's income statement for 2025. Operating Expenses Pension Expense SANDHILL COMPANY Income Statement (Partial) For the Year Ended December 31, 2025 Other Revenues/Expenses $ 79580 i Pension Expense LA 61280 i Indicate the pension-related amounts that would be reported in the company's balance sheet for 2025. Pension Asset/Liability SANDHILL COMPANY Balance Sheet (Partial) December 31, 2025 $ LA
Sandhill Company provides the following selected information related to its defined benefit pension plan for 2025. Pension asset/liability (January 1) $25.500 Cr. Accumulated benefit obligation (December 31) 403,100 Actual and expected return on plan assets 9,000 Contributions (funding) in 2025 148,600 Fair value of plan assets (December 31) 795,800 Settlement rate 10% Projected benefit obligation (January 1) 702.800 Service cost 79.580 (a1) Your answer is correct. Compute pension expense. Pension expense for 2025 $ 140860 i Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2025. Preparation of a pension worksheet is not required. Benefits paid in 2025 were $39,100. (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. List all debit entries before credit entries.) Account Titles and Explanation Pension Expense Debit 140860 Credit Pension Asset/Liability Cash 7740 148600 Indicate the pension-related amounts that would be reported in the company's income statement for 2025. Operating Expenses Pension Expense SANDHILL COMPANY Income Statement (Partial) For the Year Ended December 31, 2025 Other Revenues/Expenses $ 79580 i Pension Expense LA 61280 i Indicate the pension-related amounts that would be reported in the company's balance sheet for 2025. Pension Asset/Liability SANDHILL COMPANY Balance Sheet (Partial) December 31, 2025 $ LA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sandhill Company provides the following selected information related to its defined benefit pension plan for 2025.
Pension asset/liability (January 1)
$25.500 Cr.
Accumulated benefit obligation (December 31)
403,100
Actual and expected return on plan assets
9,000
Contributions (funding) in 2025
148,600
Fair value of plan assets (December 31)
795,800
Settlement rate
10%
Projected benefit obligation (January 1)
702.800
Service cost
79.580
(a1)
Your answer is correct.
Compute pension expense.
Pension expense for 2025 $
140860
i
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2025. Preparation of
a pension worksheet is not required. Benefits paid in 2025 were $39,100. (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. List
all debit entries before credit entries.)
Account Titles and Explanation
Pension Expense
Debit
140860
Credit
Pension Asset/Liability
Cash
7740
148600
Indicate the pension-related amounts that would be reported in the company's income statement for 2025.
Operating Expenses
Pension Expense
SANDHILL COMPANY
Income Statement (Partial)
For the Year Ended December 31, 2025
Other Revenues/Expenses
$
79580
i
Pension Expense
LA
61280 i
Indicate the pension-related amounts that would be reported in the company's balance sheet for 2025.
Pension Asset/Liability
SANDHILL COMPANY
Balance Sheet (Partial)
December 31, 2025
$
LA
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