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E20.1 (LO1,2) m (Pension Expense, Journal Entries) The following information is availa- ble for the pension plan of Radcliffe Company for the year 2020. Actual
E20.1 (LO1,2) m (Pension Expense, Journal Entries) The following information is availa- ble for the pension plan of Radcliffe Company for the year 2020. Actual and expected return on plan assets $ 15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Interest/discount rate 10% Prior service cost amortization 8,000 Projected benefit obligation, January 1, 2020 500,000 Service cost 60,000 Instructions a. Compute pension expense for the year 2020. b. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. E20.5 (LO 3) (Application of Years-of-Service Method) Andrews Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Future Employee Years of Service Jim Paul UI A w Nancy Dave Kathy 6 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $72,000. Instructions Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years- of-service method, setting up appropriate schedules
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