Question
E20-3 (computation of pension expense) Veldre Company provides the following information about its defined benefit pension plan for the year 2017 Service cost $90,000 Contribution
E20-3 (computation of pension expense) Veldre Company provides the following information about its defined benefit pension plan for the year 2017
Service cost $90,000
Contribution to the plan $105,000
Prior service cost amortization $10,000
Actual and expected return on plan assets $64,000
Benefits paid $40,000
Plan assets at 1/1/2017 $640,000
Projected benefit obligation at 1/1/2017 $700,000
Accumulated OCI(PSC) at 1/1/2017 $150,000
Interest/discount (settlement) rate 10%
Instructions:
Prepare a pension worksheet inserting January 1 2017 balances, showing December 31,2017, balances and the journal entry recording pension expense
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