The following information is available for the pension plan of Radcliffe Company for the year 2019. Interest revenue on plan assets $ 15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Discount (interest) rate 10% Defined benefit obligation, January 1, 2019 500,000 Service cost 60,000 Instructions a. Compute pension expense for the year 2019. b. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019.
The following information is available for the pension plan of Radcliffe Company for the year 2019. Interest revenue on plan assets $ 15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Discount (interest) rate 10% Defined benefit obligation, January 1, 2019 500,000 Service cost 60,000 Instructions a. Compute pension expense for the year 2019. b. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information is
available for the pension plan of Radcliffe Company for the year 2019.
Interest revenue on plan assets $ 15,000
Benefits paid to retirees 40,000
Contributions (funding) 90,000
Discount (interest) rate 10%
Defined benefit obligation, January 1, 2019 500,000
Service cost 60,000
Instructions
a. Compute pension expense for the year 2019.
b. Prepare the
contribution to the pension plan in 2019.
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