9 85,000 Instructions (a). Using the data above, compute pension expense for Wasim Corp. for the year 2019 by preparing a pensi
9 85,000 Instructions (a). Using the data above, compute pension expense for Wasim Corp. for the year 2019 by preparing a pensi
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 5E
Related questions
Question
18). 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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