The following information is available for the pension plan of Sunland Company for the year 2020.Actual and expected return on plan assets $ 14,700 Benefits paid to retirees 40,800 Contributions (funding) 81,100 Interest/discount rate 10%Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 458,000 Service cost 63,900 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. (Creditaccount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" forthe account titles and enter O for the amounts.)Account Titles and ExplanationDebitCredit Your answer is correct.Compute pension expense for the year 2020.Pension expense for 2020$4102600%24

Total pension expenses include service cost, interest cost, actual return on plan assets, and…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is available for the pension plan of Sunland Company for the year 2020.

Actual and expected return on plan assets	$ 14,700
Benefits paid to retirees	40,800
Contributions (funding)	81,100
Interest/discount rate	10	%
Prior service cost amortization	7,600
Projected benefit obligation, January 1, 2020	458,000
Service cost	63,900

Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. (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 O for the amounts.)
Account Titles and Explanation
Debit
Credit

Your answer is correct.
Compute pension expense for the year 2020.
Pension expense for 2020
$4
102600
%24

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