Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help Paul Dobson Company sponsors a defined benefit plan for its 100 employees. On January 1 , 2010 , the company's actuary provided the
please help
Paul Dobson Company sponsors a defined benefit plan for its 100 employees. On January 1 , 2010 , the company's actuary provided the following information. The average remaining service period for the participating employees is 10.5 years. All employees are expected to receive benefits under the plan. On December 31, 2010, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $52,000; the projected benefit obligation was $452,000; fair value of pension assets was $276,000; the ac- cumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,000. The company's current year's contribution to the pension plan amounted to $65,000. No benefits were paid during the year. Instructions (Round to the nearest dollar) (a) Determine the components of pension expense that the company would recognize in 2010. (With only one year involved, you need not prepare a worksheet.) (b) Prepare the journal entry to record the pension expense and the company's funding of the pension plan in 2010. (c) Compute the amount of the 2010 increase/decrease in gains or losses and the amount to be amortized in 2010 and 2011. (d) Indicate the pension amounts reported in the financial statement as of December 31, 2010 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