Question
On January 1, 2019, Company BBB establishes a defined benefit pension plan for its employees. The plans annual service cost is $300,000, and the discount
On January 1, 2019, Company BBB establishes a defined benefit pension plan for its employees. The plan’s annual service cost is $300,000, and the discount rate is 6 percent. The company funds the plan with $250,000 on December 31, 2019.
Prepare the journal entries to record the service cost and funding of the pension plan for 2019.
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Intermediate Accounting
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
