Question
Monty Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) $26,800 Cr. Accumulated benefit obligation
Monty Company provides the following selected information related to its defined benefit pension plan for 2020.
Pension asset/liability (January 1) | $26,800 | Cr. | |
Accumulated benefit obligation (December 31) | 397,500 | ||
Actual and expected return on plan assets | 10,900 | ||
Contributions (funding) in 2020 | 150,200 | ||
Fair value of plan assets (December 31) | 793,000 | ||
Settlement rate | 10 | % | |
Projected benefit obligation (January 1) | 699,000 | ||
Service cost | 79,300 |
Compute pension expense.
Pension expense for 2020= |
Prepare the journal entry to record pension expense and the employers contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $40,300. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation | Debit | Credit |
MIS380_02 HW # 11 Introduction to Pension Accounting e Textbook and Media Indicate the pension-related amounts that would be reported in the company's income statement and balance sheet for 2020. Monty Company Income Statement (Partial) Monty Company Balance Sheet (Partial) eTextbook and Media Attempts: 0 of 5 used Save for Later Submit Answer Send to Gradebook
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