Service cost Projected benefit obligation (1/1) Plan assets (1/1) Company contribution (funded 12/31) Discount rate Expected long-term (and actual) rate of return on plan assets are no other components of Baron's pension expense. 2019 $150,000 112,500 112.500 155,500 8% 8% Required: . Compute the amount of Baron's pension expense for 2019 and 2020. 2. Prepare the joumal entries to record the pension expense for 2019 and 2020. 2020 $160,000 271,500 277,000 170,000 8%
Service cost Projected benefit obligation (1/1) Plan assets (1/1) Company contribution (funded 12/31) Discount rate Expected long-term (and actual) rate of return on plan assets are no other components of Baron's pension expense. 2019 $150,000 112,500 112.500 155,500 8% 8% Required: . Compute the amount of Baron's pension expense for 2019 and 2020. 2. Prepare the joumal entries to record the pension expense for 2019 and 2020. 2020 $160,000 271,500 277,000 170,000 8%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Baron Company adopted a defined benefit pension plan on January 1, 2018. The following information pertains to the pension plan for 2019 and 2020:
Service cost
Projected benefit obligation (1/1)
Plan assets (1/1)
Company contribution (funded 12/31)
Discount rate
Expected long-term (and actual) rate of return on plan assets
There are no other components of Baron's pension expense.
2019
$150,000
112,500
112,500
155,500
8%
8%
Required:
1. Compute the amount of Baron's pension expense for 2019 and 2020.
2. Prepare the joumal entries to record the pension expense for 2019 and 2020.
2020
$160,000
271,500
277,000
170,000
8%
8%
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