U.S. Metallurgical Incorporated reported the following balances in its financial statements and disclosure notes at December 31, 2023. Plan assets $ 420,000 Projected benefit obligation 350,000 U.S.M.’s actuary determined that 2024 service cost is $62,000. Both the expected and actual rate of return on plan assets are 10%. The interest (discount) rate is 4%. U.S.M. contributed $122,000 to the pension fund at the end of 2024, and retirees were paid $46,000 from plan assets. Required: What is the pension expense at the end of 2024? What is the projected benefit obligation at the end of 2024? What is the plan assets balance at the end of 2024? What is the net pension asset or net pension liability at the end of 2024? Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
U.S. Metallurgical Incorporated reported the following balances in its financial statements and disclosure notes at December 31, 2023. Plan assets $ 420,000 Projected benefit obligation 350,000 U.S.M.’s actuary determined that 2024 service cost is $62,000. Both the expected and actual rate of return on plan assets are 10%. The interest (discount) rate is 4%. U.S.M. contributed $122,000 to the pension fund at the end of 2024, and retirees were paid $46,000 from plan assets. Required: What is the pension expense at the end of 2024? What is the projected benefit obligation at the end of 2024? What is the plan assets balance at the end of 2024? What is the net pension asset or net pension liability at the end of 2024? Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
U.S. Metallurgical Incorporated reported the following balances in its financial statements and disclosure notes at December 31, 2023.
| Plan assets | $ 420,000 |
|---|---|
| Projected benefit obligation | 350,000 |
U.S.M.’s actuary determined that 2024 service cost is $62,000. Both the expected and actual
Required:
- What is the pension expense at the end of 2024?
- What is the projected benefit obligation at the end of 2024?
- What is the plan assets balance at the end of 2024?
- What is the net pension asset or net pension liability at the end of 2024?
- Prepare
journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
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