Baron Company adopted a defined benefit pension plan on January 1, 2006. The following information pertains to

Question:

Baron Company adopted a defined benefit pension plan on January 1, 2006. The following information pertains to the pension plan for 2007 and 2008:

There are no other components of Baron Company's pension expense.
Required
1. Compute the amount of Baron Company's pension expense for 2007 and 2008.
2. Prepare the journal entries to record the pension expense for 2007 and2008.

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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Question Posted: Mar 10, 2012 06:46 AM

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Baron Company adopted a defined benefit pension plan on January 1, 2006. The following information pertains to

Question:

2007 2008 Service cost Projected benefit obligation (1/1) Plan assets (1/1) Company contribution (funded 12/31) Discount rate Expected long-term (and actual) S160,000 $172,000 120,000 289,600 120,000 279,600 150,000 8% 160,000 890 rate of return on plan assets 890 8%

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For illustrative purposes the amount funded in each year is less than the service cost In some circu...View the full answer

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