Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kessler, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December

Kessler, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2018:

January 1, 2018 December 31, 2018

Projected benefit obligation $2,500,000 $2,850,000

Fair value of plan assets 1,250,000 1,600,000

Accumulated benefit obligation 1,930,000 2,620,000

Accumulated OCI (PSC) 540,000 300,000

The service cost component for 2018 is $180,000 and the amortization of prior service cost is $240,000. The company's actual funding of the plan in 2018 amounted to $525,000. The expected return on plan assets and the settlement rate were both 8%.

Instructions

(a) Determine the pension expense to be reported in 2018.

(b) Prepare the journal entry to record pension expense and the employers' contribution to the pension plan in 2018.

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

Latest Qualified Internal Auditor Exam Questions

Authors: Pass Assured

1st Edition

1699310599, 978-1699310595

More Books

Students also viewed these Accounting questions

Question

1. Does your voice project confidence? Authority?

Answered: 1 week ago