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Cassy Budd Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $74,000;
Cassy Budd Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $74,000; service cost, $17,900; interest cost, $4,900; benefits paid for the year, $8,900; ending PBO, $87,900; the expected return on plan assets, $9,900; and cash deposited with pension trustee, $13,000. There were no other pension-related costs. The journal entry to record the annual pension costs will include a credit to the PBO for:
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