Fukuyama Inc. has a defined benefit pension plan. Below is information pertaining to the plan for fiscal year 2020. 1. Service cost related to pension expense is $140,000. 2. The projected benefit obligation at the beginning of the year is $305,000. 3. The fair value of plan assets at the beginning of the year equals $280,000. 4. The actual return on plan assets equals $30,000. 5. The expected return on plan assets is 9%. 6. The settlement rate is 10%. 7. The accumulated OCI--prior service cost at the beginning of the year is $140,000. The company has a workforce of 200 employees, all of whom are expected to receive benefits under the plan. Their total number of remaining service-years is 1,000 and the service-years attributable to 2020 is 200. The company uses the years-of-service method to amortize these costs. 8. At the beginning of the year, the company has an Accumulated OCI (loss) $70,000. Any amortization is recognized on a straight-line basis over the average remaining service-life of the employees. 9. The contribution made to the pension fund in 2020 was $131,000. Instructions (a) Determine the pension expense to be reported on the income statement for 2020. (Round all computations to nearest dollar.) (b) Prepare the journal entry to record pension expense for 2020. Fukuyama Inc. has a defined benefit pension plan. Below is information pertaining to the plan for fiscal year 2020. 1. Service cost related to pension expense is $140,000. 2. The projected benefit obligation at the beginning of the year is $305,000. 3. The fair value of plan assets at the beginning of the year equals $280,000. 4. The actual return on plan assets equals $30,000. 5. The expected return on plan assets is 9%. 6. The settlement rate is 10%. 7. The accumulated OCI--prior service cost at the beginning of the year is $140,000. The company has a workforce of 200 employees, all of whom are expected to receive benefits under the plan. Their total number of remaining service-years is 1,000 and the service-years attributable to 2020 is 200. The company uses the years-of-service method to amortize these costs. 8. At the beginning of the year, the company has an Accumulated OCI (loss) $70,000. Any amortization is recognized on a straight-line basis over the average remaining service-life of the employees. 9. The contribution made to the pension fund in 2020 was $131,000. Instructions (a) Determine the pension expense to be reported on the income statement for 2020. (Round all computations to nearest dollar.) (b) Prepare the journal entry to record pension expense for 2020. Fukuyama Inc. has a defined benefit pension plan. Below is information pertaining to the plan for fiscal year 2020. 1. Service cost related to pension expense is $140,000. 2. The projected benefit obligation at the beginning of the year is $305,000. 3. The fair value of plan assets at the beginning of the year equals $280,000. 4. The actual return on plan assets equals $30,000. 5. The expected return on plan assets is 9%. 6. The settlement rate is 10%. 7. The accumulated OCI--prior service cost at the beginning of the year is $140,000. The company has a workforce of 200 employees, all of whom are expected to receive benefits under the plan. Their total number of remaining service-years is 1,000 and the service-years attributable to 2020 is 200. The company uses the years-of-service method to amortize these costs. 8. At the beginning of the year, the company has an Accumulated OCI (loss) $70,000. Any amortization is recognized on a straight-line basis over the average remaining service-life of the employees. 9. The contribution made to the pension fund in 2020 was $131,000. Instructions (a) Determine the pension expense to be reported on the income statement for 2020. (Round all computations to nearest dollar.) (b) Prepare the journal entry to record pension expense for 2020. Fukuyama Inc. has a defined benefit pension plan. Below is information pertaining to the plan for fiscal year 2020. 1. Service cost related to pension expense is $140,000. 2. The projected benefit obligation at the beginning of the year is $305,000. 3. The fair value of plan assets at the beginning of the year equals $280,000. 4. The actual return on plan assets equals $30,000. 5. The expected return on plan assets is 9%. 6. The settlement rate is 10%. 7. The accumulated OCI--prior service cost at the beginning of the year is $140,000. The company has a workforce of 200 employees, all of whom are expected to receive benefits under the plan. Their total number of remaining service-years is 1,000 and the service-years attributable to 2020 is 200. The company uses the years-of-service method to amortize these costs. 8. At the beginning of the year, the company has an Accumulated OCI (loss) $70,000. Any amortization is recognized on a straight-line basis over the average remaining service-life of the employees. 9. The contribution made to the pension fund in 2020 was $131,000. Instructions (a) Determine the pension expense to be reported on the income statement for 2020. (Round all computations to nearest dollar.) (b) Prepare the journal entry to record pension expense for 2020
