Calculate the amount of pension expense of Company P for 2016.

Question

On December 31, 2016, Robey Company accumulated the following information for 2016 in regard to its defined benefit pension plan: Service cost $113,390 Interest cost on projected benefit obligation 11,810 Expected return on plan assets 11,250 Amortization of prior service cost 2,130 On its December 31, 2015, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $14,100. Required: 1. Compute the amount of Robey’s pension expense for 2016. 2. Prepare all the journal entries related to Robey’s pension plan for 2016 if it funds the pension plan in the amount of (a) $116,080, (b) $115,170, and (c) $119,920. 3. Next Level Assuming Robey’s beginning 2016 Accumulated Other Comprehensive Income: Prior Service Cost balance was $55,640 what would be its ending balance? 4. Next Level How much would Robey need to fund its pension plan for 2016 in order to report an accrued/ prepaid pension cost asset of $4,870 at the end of 2016?

Answer 1

Question

Chapter 19, Problem 3E

1.

To determine

Calculate the amount of pension expense of Company P for 2016.

2.

To determine

Prepare the necessary journal entries of Company P for 2016, if company P funds the pension plant in the amount of (a) $128,000 and (b) 120,000.

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On December 31, 2016, Robey Company accumulated the following information for 2016 in regard to its defined benefit pension plan: Service cost $113,390 Interest cost on projected benefit obligation 11,810 Expected return on plan assets 11,250 Amortization of prior service cost 2,130 On its December 31, 2015, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $14,100. Required: 1. Compute the amount of Robey’s pension expense for 2016. 2. Prepare all the journal entries related to Robey’s pension plan for 2016 if it funds the pension plan in the amount of (a) $116,080, (b) $115,170, and (c) $119,920. 3. Next Level Assuming Robey’s beginning 2016 Accumulated Other Comprehensive Income: Prior Service Cost balance was $55,640 what would be its ending balance? 4. Next Level How much would Robey need to fund its pension plan for 2016 in order to report an accrued/ prepaid pension cost asset of $4,870 at the end of 2016?

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