Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pension Worksheet Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2018, the following balances related to this plan. Plan assets
Pension Worksheet Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2018, the following balances related to this plan. Plan assets (market-related value) $450,000 Projected benefit obligation 600,000 Pension asset liability 150,000 AOCI-Prior service cost 65,000 AOCI - Loss 75,000 As a result of the operation of the plan during 2018, the actuary provided the following additional data at December 31, 2018. Service cost for 2018 $ 86,000 Amortization of prior service cost 2,000 Contribution in 2018 115,000 Benefits paid retirees in 2018 70,000 Settlement rate 7% Expected return rate 6% Projected benefit obligation, 12/31/18 647,000 Plan assets, 12/31/18 540,000 Average remaining service life of active employees in 9 years. Instructions: (a) Comploto tho pension worksheet for Howard Corp. for the year ending 12/31/18 (6) Prepare the journal entry for pension expense (c) Howard Corp. reported net income fo $1,234,000 for the year ending 12/31/18. Prepare a Statement of Comprehensive Income for the year ending 12/31/18 - Paragraph Pension Worksheet Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2018, the following balances related to this plan. Plan assets (market-related value) $450,000 Projected benefit obligation 600,000 Pension asset liability 150,000 AOCI-Prior service cost 65,000 AOCI - Loss 75,000 As a result of the operation of the plan during 2018, the actuary provided the following additional data at December 31, 2018. Service cost for 2018 $ 86,000 Amortization of prior service cost 2,000 Contribution in 2018 115,000 Benefits paid retirees in 2018 70,000 Settlement rate 7% Expected return rate 6% Projected benefit obligation, 12/31/18 647,000 Plan assets, 12/31/18 540,000 Average remaining service life of active employees in 9 years. Instructions: (a) Comploto tho pension worksheet for Howard Corp. for the year ending 12/31/18 (6) Prepare the journal entry for pension expense (c) Howard Corp. reported net income fo $1,234,000 for the year ending 12/31/18. Prepare a Statement of Comprehensive Income for the year ending 12/31/18 - Paragraph
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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