The following information is available for Oriole Corporation’s pension plan for the year 2020: Plan assets, January 1, 2020 $410,000 Actual return on plan assets 17,000 Benefits paid to retirees 40,300 Contributions (funding) 94,100 Discount rate 11% Defined benefit obligation, January 1, 2020, accounting basis valuation 506,000 Service cost 66,300 Calculate pension expense for the year 2020, assuming that Oriole follows ASPE, and its accounting policy is to use an accounting basis valuation for its defined benefit obligation. Pension expense $ Provide the entries to recognize the pension expense and funding for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record pension expense.) December 31, 2020
The following information is available for Oriole Corporation’s pension plan for the year 2020: Plan assets, January 1, 2020 $410,000 Actual return on plan assets 17,000 Benefits paid to retirees 40,300 Contributions (funding) 94,100 Discount rate 11% Defined benefit obligation, January 1, 2020, accounting basis valuation 506,000 Service cost 66,300 Calculate pension expense for the year 2020, assuming that Oriole follows ASPE, and its accounting policy is to use an accounting basis valuation for its defined benefit obligation. Pension expense $ Provide the entries to recognize the pension expense and funding for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record pension expense.) December 31, 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information is available for Oriole Corporation’s pension plan for the year 2020:
| Plan assets, January 1, 2020 | $410,000 | ||
| Actual return on plan assets | 17,000 | ||
| Benefits paid to retirees | 40,300 | ||
| Contributions (funding) | 94,100 | ||
| Discount rate | 11% | ||
| Defined benefit obligation, January 1, 2020, accounting basis valuation | 506,000 | ||
| Service cost | 66,300 |
Calculate pension expense for the year 2020, assuming that Oriole follows ASPE, and its accounting policy is to use an accounting basis valuation for its defined benefit obligation.
| Pension expense | $ |
Provide the entries to recognize the pension expense and funding for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
December 31, 2020 |
|
||
|
|
|||
| (To record pension expense.) | |||
|
December 31, 2020 |
|
||
|
|
| (To record contributions to the pension fund.) |
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