Question
Our financial statements at December 31, 2019, contained a net defined benefit liability of $120,000 and disclosed a defined benefit obligation (DBO) of $390,000. -
Our financial statements at December 31, 2019, contained a net defined benefit liability of $120,000 and disclosed a defined benefit obligation (DBO) of $390,000. - We contributed $36,000 to the plan on November 1, 2020. - Our current service cost for 2020 was determined to be $40,000. - Benefits of $20,000 were paid from the plan evenly throughout 2020. - The discount rate applied to the pension plan liabilities and plan assets is 5%. - There was a loss on remeasurement of the plan assets of $4,100 and and an acturial gain of $ 5900 for 2020
( a). PREPARE THE JOURNAL ENTRY FOR CONTRIBUTION TO THE PLAN DURING 2020.
(b) prepare the pension expense for 2020 recognizing separately each component of the pension expense.
(c ) prepare the journal entry remeasurment of plan asset and acturial losses .
( d ) prepare the journal entry of benefits for plan.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started