ACC 620 Pension Expense and Liability

On December 31, 2013, Robey Company accumulated the following information for 2013 in regard to its defined benefit pension plan.

Service cost$120,000

Interest cost on projected benefit obligation 20,000

Expected return on plan assets 18,000

Amortization of prior service cost 3,000

On December 31, 2012, balance sheet, Robey had reported an accrued prepaid pension cost liability of $18,000.

Compute the amount of Robey 's pension expense for 2013

Robey Company

Pension Expense Calculation

December 31, 2013

Service

Interest Cost on Projected benefit obligation

Expected return on plan assets

Amortization of prior service cost

2013 pension expense

2a. Prepare all the journal entries related to Robey 's pension plan for 2013 if it funds the pension plan it the amount of $125,000

Record expense

Record PSC

2b. Prepare all the journal entries related to Robey 's pension plan for 2013. If it funds the pension plan in the amount of $121,000. For compound entries, if an amount box does not require an entry, leave it blank.

Record expensePension Expense

Cash

Accrued/Prepaid pension Cost

Record PSC Accrued/Prepaid Pension Cost

Other Comprehension income

2c. Prepare all the journal entries related to Robey 's pension plan for 2013 if it funds the pension plan in the amount of $126,000. For compound entries, if an amount box does not require an entry, leave it blank.

Record expense Rent Expense

Interest Expense

Cash

Record PSCPension Expense

Other Comprehension Income

3. Assuming Robey's beginning 2013 Other Comprehension Income-Prior Service Cost Balance was $51,000 what would be its ending balance?

$________

4. How much would Robey need to fund its pension plan for 2013 in order to report an accrued/prepaid pension cost asset of $4,000 at the end of 2013?

$_________