Determine the company’s pension expense for the current year. Prepare the journal entries to record the company’s (a) pension expense, (b) funding, and (c) payment for the current year.
Determine the company’s pension expense for the current year. Prepare the journal entries to record the company’s (a) pension expense, (b) funding, and (c) payment for the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A company has a noncontributory, defined benefit pension plan. At December 31 of the current year, the company received the following information:
| Projected Benefit Obligation | ($ in millions) |
|---|---|
| Balance, January 1 | $ 130 |
| Service cost | 23 |
| Interest cost | 13 |
| Benefits paid | (12) |
| Balance, December 31 | $ 154 |
| Plan Assets | |
|---|---|
| Balance, January 1 | $ 70 |
| Actual return on plan assets | 9 |
| Contributions current year | 23 |
| Benefits paid | (12) |
| Balance, December 31 | $ 90 |
The expected long-term
Required:
- Determine the company’s pension expense for the current year.
- Prepare the
journal entries to record the company’s (a) pension expense, (b) funding, and (c) payment for the current year.
Please don't give answer & formulae in image based format.. thanku
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