W13-2 Violet Company provides the following information about its defined benefit pension plan for the year 2019. 900,000 1,005,000 640,000 400,000 6,400,000 7,000,000 1,500,000 10% Service Cost Contribution to the plan Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2019 Projected benefit obligation at January 1, 2019 Accumulated OCI at January 1, 2019 Interest (discount) settlement rate Instructions: (a)Compute the pension expense for the year 2019. (b)Prepare a pension worksheet inserting January 1, 2019, balances, showing December 31, 2019, balances, and the journal entry recording

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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W13-2 Violet Company provides the following information about its defined benefit pension plan for the
year 2019.
Service Cost
900,000
1,005,000
Contribution to the plan
Actual and expected return on plan assets
Benefits paid
Plan assets at January 1, 2019
Projected benefit obligation at January 1, 2019
Accumulated OCI at January 1, 2019
Interest (discount) settlement rate
640,000
400,000
6,400,000
7,000,000
1,500,000
10%
Instructions:
(a)Compute the pension expense for the year 2019.
(b)Prepare a pension worksheet inserting January 1, 2019, balances, showing December 31, 2019, balances,
and the journal entry recording
Transcribed Image Text:W13-2 Violet Company provides the following information about its defined benefit pension plan for the year 2019. Service Cost 900,000 1,005,000 Contribution to the plan Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2019 Projected benefit obligation at January 1, 2019 Accumulated OCI at January 1, 2019 Interest (discount) settlement rate 640,000 400,000 6,400,000 7,000,000 1,500,000 10% Instructions: (a)Compute the pension expense for the year 2019. (b)Prepare a pension worksheet inserting January 1, 2019, balances, showing December 31, 2019, balances, and the journal entry recording
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