Problem 17-9 (Static) Determine pension expense; PBO; plan assets; net pension asset or liability; ournal entries [LO17-3, 17-4, 17-5, 17-6 ,17-7 ,17-8] J.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020. Plan assets $400,000 320,000 Projected benefit obligation J.S.M's actuary determined that 2021 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The nterest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2021, and retirees were paid $44,000 from plan assets. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).) Required: 1. What is the pension expense at the end of 2021? 2. What is the projected benefit obligation at the end of 2021? 7 What is the plan assets balance at the end of 2021? u nonsion liability at the end of 2021? ninn arsets, and (c) retiree benefit payments.
Problem 17-9 (Static) Determine pension expense; PBO; plan assets; net pension asset or liability; ournal entries [LO17-3, 17-4, 17-5, 17-6 ,17-7 ,17-8] J.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020. Plan assets $400,000 320,000 Projected benefit obligation J.S.M's actuary determined that 2021 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The nterest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2021, and retirees were paid $44,000 from plan assets. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).) Required: 1. What is the pension expense at the end of 2021? 2. What is the projected benefit obligation at the end of 2021? 7 What is the plan assets balance at the end of 2021? u nonsion liability at the end of 2021? ninn arsets, and (c) retiree benefit payments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![**Problem 17-9 (Static): Determine Pension Expense; PBO; Plan Assets; Net Pension Asset or Liability; Journal Entries**
**[LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]**
U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes as of December 31, 2020:
- **Plan assets:** $400,000
- **Projected benefit obligation (PBO):** $320,000
U.S.M’s actuary determined that the 2021 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2021, and retirees were paid $44,000 from plan assets.
(*Enter your answers in thousands (i.e., 10,000 should be entered as 10).)*
**Required:**
1. What is the pension expense at the end of 2021?
2. What is the projected benefit obligation at the end of 2021?
3. What is the plan assets balance at the end of 2021?
4. What is the net pension asset or net pension liability at the end of 2021?
5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
Complete this question by entering your answers in the tabs below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6ce3753-b96c-43e9-b162-619ea9ec998a%2F3f0975fa-1be3-44bb-a933-7527235f17ac%2Ftn7ryd8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Problem 17-9 (Static): Determine Pension Expense; PBO; Plan Assets; Net Pension Asset or Liability; Journal Entries**
**[LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]**
U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes as of December 31, 2020:
- **Plan assets:** $400,000
- **Projected benefit obligation (PBO):** $320,000
U.S.M’s actuary determined that the 2021 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2021, and retirees were paid $44,000 from plan assets.
(*Enter your answers in thousands (i.e., 10,000 should be entered as 10).)*
**Required:**
1. What is the pension expense at the end of 2021?
2. What is the projected benefit obligation at the end of 2021?
3. What is the plan assets balance at the end of 2021?
4. What is the net pension asset or net pension liability at the end of 2021?
5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
Complete this question by entering your answers in the tabs below.
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