Wasim Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following balances relate to this plan. Plan assets $480,000 Defined benefit obligation 600,000 Pension asset/liability 120,000 Accumulated OCI -0- As a result of the operation of the plan during 2019, the following additional data are provided by the actuary. Service cost for 2019 $90,000 Discount (interest) rate 6% Actual return on plan assets in 2019 55,000 Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions 76,000 Contributions in 2019 99,000 Benefits paid retirees in 2019 85,000 Instructions (a). Using the data above, compute pension expense for Wasim Corp. for the year 2019 by preparing a pension worksheet. (b). Prepare the journal entry for pension expense for 2019.
Wasim Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following balances relate to this plan. Plan assets $480,000 Defined benefit obligation 600,000 Pension asset/liability 120,000 Accumulated OCI -0- As a result of the operation of the plan during 2019, the following additional data are provided by the actuary. Service cost for 2019 $90,000 Discount (interest) rate 6% Actual return on plan assets in 2019 55,000 Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions 76,000 Contributions in 2019 99,000 Benefits paid retirees in 2019 85,000 Instructions (a). Using the data above, compute pension expense for Wasim Corp. for the year 2019 by preparing a pension worksheet. (b). Prepare the journal entry for pension expense for 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Wasim Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following balances relate to this plan.
Plan assets
$480,000
Defined benefit obligation
600,000
Pension asset/liability
120,000
Accumulated OCI
-0-
As a result of the operation of the plan during 2019, the following additional data are provided by the actuary.
Service cost for 2019
$90,000
Discount (interest) rate
6%
Actual return on plan assets in 2019
55,000
Unexpected loss from change in defined benefit obligation,
due to change in actuarial predictions
76,000
Contributions in 2019
99,000
Benefits paid retirees in 2019
85,000
Instructions
(a). Using the data above, compute pension expense for Wasim Corp. for the year 2019 by preparing a pension worksheet.
(b). Prepare the journal entry for pension expense for 2019.
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