On December 31, 2019, Johnson Company accumulated the following information for 2019 in regard to its defined benefit pension plan: Service cost $113,230 Interest cost on projected benefit obligation 11,970 Expected return on plan assets 11,600 Amortization of prior service cost 2,020 On its December 31, 2018, balance sheet, Johnson had reported an accrued/prepaid pension cost liability of $12,880. Required: 1. Compute the amount of Johnson’s pension expense for 2019. 2. Prepare all the journal entries related to Johnson’s pension plan for 2019 if it funds the pension plan in the amount of (a) $115,620, (b) $114,620, and (c) $119,430. 3. Next Level Assuming Johnson’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $60,150 what would be its ending balance?
On December 31, 2019, Johnson Company accumulated the following information for 2019 in regard to its defined benefit pension plan: Service cost $113,230 Interest cost on projected benefit obligation 11,970 Expected return on plan assets 11,600 Amortization of prior service cost 2,020 On its December 31, 2018, balance sheet, Johnson had reported an accrued/prepaid pension cost liability of $12,880. Required: 1. Compute the amount of Johnson’s pension expense for 2019. 2. Prepare all the journal entries related to Johnson’s pension plan for 2019 if it funds the pension plan in the amount of (a) $115,620, (b) $114,620, and (c) $119,430. 3. Next Level Assuming Johnson’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $60,150 what would be its ending balance?
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 7RE
Related questions
Question
On December 31, 2019, Johnson Company accumulated the following information for 2019 in regard to its defined benefit pension plan:
| Service cost | $113,230 |
| Interest cost on projected benefit obligation | 11,970 |
| Expected return on plan assets | 11,600 |
| Amortization of prior service cost | 2,020 |
On its December 31, 2018, balance sheet, Johnson had reported an accrued/prepaid pension cost liability of $12,880.
Required:
| 1. | Compute the amount of Johnson’s pension expense for 2019. |
| 2. | Prepare all the |
| 3. | Next Level Assuming Johnson’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $60,150 what would be its ending balance? |
| 4. | Next Level How much would Johnson need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $5,120 at the end of 2019? |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT