E20-3 (Preparation of pension Worksheet) Verde Company provides the following information about its defined benefit pension plan for the year 2017. Service Cost $90,000 Contribution to the plan $105,000 Prior service cost amortization $10,000 Actual and expected return on plan assets $64,000 Benefits paid $40,000 Plan assets at January 1, 2017 $640,000 Projected benefit obligation at Jaunary 1, 2017 $700,000 Accumulated OCI (PSC) at January 1, 2017 $150,000 Interest/discount(settlement) rate 10% Instructions: Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording pension expense.

E20-3 (Preparation of pension Worksheet) Verde Company provides the following information about its defined benefit pension plan for the year 2017. Service Cost $90,000 Contribution to the plan $105,000 Prior service cost amortization $10,000 Actual and expected return on plan assets $64,000 Benefits paid $40,000 Plan assets at January 1, 2017 $640,000 Projected benefit obligation at Jaunary 1, 2017 $700,000 Accumulated OCI (PSC) at January 1, 2017 $150,000 Interest/discount(settlement) rate 10% Instructions: Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording pension expense.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 4E

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

E20-3 (Preparation of pension Worksheet) Verde Company provides the following information about its defined benefit pension plan for the year 2017.

Service Cost $90,000

Contribution to the plan $105,000

Prior service cost amortization $10,000

Actual and expected return on plan assets $64,000

Benefits paid $40,000

Plan assets at January 1, 2017 $640,000

Projected benefit obligation at Jaunary 1, 2017 $700,000

Accumulated OCI (PSC) at January 1, 2017 $150,000

Interest/discount(settlement) rate 10%

Instructions:

Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording pension expense.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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