Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) Accumulated benefit obligation (December 31) Actual and expected return on plan assets Contributions (funding) in 2020 Fair value of plan assets (December 31) Settlement rate Projected benefit obligation (January 1) Service cost (a) Your answer is correct. Compute pension expense. Pension expense for 2020 $ Account Titles and Explanation Pension Expense Pension Asset/Liability $27,200 Cr. Cash 403,300 11,000 150,600 794,200 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 10 % 696,900 79,420 138110 Debit 138110 12490 Credit 150,60
Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) Accumulated benefit obligation (December 31) Actual and expected return on plan assets Contributions (funding) in 2020 Fair value of plan assets (December 31) Settlement rate Projected benefit obligation (January 1) Service cost (a) Your answer is correct. Compute pension expense. Pension expense for 2020 $ Account Titles and Explanation Pension Expense Pension Asset/Liability $27,200 Cr. Cash 403,300 11,000 150,600 794,200 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 10 % 696,900 79,420 138110 Debit 138110 12490 Credit 150,60
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
Related questions
Question
![Indicate the pension-related amounts that would be reported in the company's income statement and balance
sheet for 2020.
Operating Expenses
Pension Expense
Other Revenue / Expenses
Pension Expense
Kingbird Company
Income Statement (Partial)
For the Year Ended December 31, 2020
Liabilities
Pension Liability
4
LA
December 31, 2020
$
LA
$
Kingbird Company
Balance Sheet (Partial)
tA
"
138110
138110
14710](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3aff2365-9f44-4770-b8e3-e2ed0988bbf7%2F010b3572-0c99-419a-951a-6f2f8a759b4a%2F00tl5f_processed.png&w=3840&q=75)
Transcribed Image Text:Indicate the pension-related amounts that would be reported in the company's income statement and balance
sheet for 2020.
Operating Expenses
Pension Expense
Other Revenue / Expenses
Pension Expense
Kingbird Company
Income Statement (Partial)
For the Year Ended December 31, 2020
Liabilities
Pension Liability
4
LA
December 31, 2020
$
LA
$
Kingbird Company
Balance Sheet (Partial)
tA
"
138110
138110
14710
![Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020.
Pension asset/liability (January 1)
Accumulated benefit obligation (December 31)
Actual and expected return on plan assets
Contributions (funding) in 2020
Fair value of plan assets (December 31)
Settlement rate
Projected benefit obligation (January 1)
Service cost
(a)
Your answer is correct.
Compute pension expense.
Pension expense for 2020 $
Account Titles and Explanation
Pension Expense
Pension Asset/Liability
$27,200 Cr.
403,300
11,000
150,600
794,200
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020.
Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (Credit account titles
are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts.)
Cash
10 %
696,900
79,420
138110
Debit
138110
12490
Credit
150,60](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3aff2365-9f44-4770-b8e3-e2ed0988bbf7%2F010b3572-0c99-419a-951a-6f2f8a759b4a%2F92725ac_processed.png&w=3840&q=75)
Transcribed Image Text:Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020.
Pension asset/liability (January 1)
Accumulated benefit obligation (December 31)
Actual and expected return on plan assets
Contributions (funding) in 2020
Fair value of plan assets (December 31)
Settlement rate
Projected benefit obligation (January 1)
Service cost
(a)
Your answer is correct.
Compute pension expense.
Pension expense for 2020 $
Account Titles and Explanation
Pension Expense
Pension Asset/Liability
$27,200 Cr.
403,300
11,000
150,600
794,200
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020.
Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (Credit account titles
are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts.)
Cash
10 %
696,900
79,420
138110
Debit
138110
12490
Credit
150,60
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning