Question
6. A Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $75,000; beginning
6. A Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $75,000; beginning Plan asset of $60,000, service cost, $18,000; interest cost, $5,000; benefits paid for the year, $9,000; the expected return on plan assets, $10,000; actual return on plan assets $8,000, and cash deposited with pension trustee, $17,000. There were no other pension-related costs. A. Compute the PBO and Plan Asset Balance at the end of the year. B. What is the Pension Expense for the year? C. What is the plan funding status at year end? D. Prepare the appropriate journal entries for the year.
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