Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 21-28 (Static) Pension plan funding [LO21-3] Hutchison-Sun Corporation has a defined benefit pension plan. Hutchison-Sun's policy is to fund the plan annually, cash

image text in transcribedimage text in transcribedimage text in transcribed

Exercise 21-28 (Static) Pension plan funding [LO21-3] Hutchison-Sun Corporation has a defined benefit pension plan. Hutchison-Sun's policy is to fund the plan annually, cash payments being made at the end of each year. Data relating to the pension plan for 2024 are as follows: Service cost Plan assets Net Pension Expense for 2024: Interest cost (6% $850) Actual return on the plan assets (11% $900-199) Adjusted for: 59 gain on the plan assets Amortization of prior service cost Amortization of net loss December 31 (5 in 1111ons) 2024 $ 1,080 $112 51 (90) 8 2 3.82 2823 $ 900 (11% $900)-(10% x $900) Required: Re-create the journal entries used to record Hutchison-Sun's 2024 pension expense, gain on plan assets, and funding of plan assets In order to determine the cash paid to the pension trustee as reported in the statement of cash flows. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Enter your answers In millions (l.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet 1 2 3 Record the entry for pension expense in 2024. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Prev View transaction list Journal entry worksheet < 1 2 3 Record the gain or loss on plan assets in 2024. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 3 Record the entry for cash paid to the pension trustee in 2024. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

9th Edition

125972266X, 9781259722660

More Books

Students also viewed these Accounting questions