Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.Plan assets $480,000Projected benefit obligation 600,000Pension asset/liability 120,000Accumulated OCI (PSC) 100,000 Dr.As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.Service cost $90,000Settlement rate, 9% Actual return on plan assets55,000Amortization of prior service cost19,000Expected return on plan assets52,000Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions76,000Contributions99,000Benefits paid retirees85,000InstructionsUsing the data above, compute pension expense for Webb Corp. for the year 2020 by preparing a pension worksheet.Prepare the journal entry for pension expense for 2020.

compute pension expense for Webb Corp. for the year 2020 by preparing a pension worksheet:

Answered: Webb Corp. sponsors a defined benefit…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Using the data above, compute pension expense for Webb Corp. for the year 2020 by preparing a pension worksheet.
Prepare the journal entry for pension expense for 2020.

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Plan assets		$480,000
Projected benefit obligation	600,000
Pension asset/liability	120,000
Accumulated OCI (PSC)	100,000 Dr.

Service cost		$90,000
Settlement rate, 9%
Actual return on plan assets	55,000
Amortization of prior service cost	19,000
Expected return on plan assets	52,000
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions	76,000
Contributions	99,000
Benefits paid retirees	85,000