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Q. The following information is provided regarding a companys pension plan: Service cost $ 640,000 Projected benefit obligation, Jan 1 $4,500,000 Fair value plan assets,
Q. The following information is provided regarding a companys pension plan:
Service cost $ 640,000
Projected benefit obligation, Jan 1 $4,500,000
Fair value plan assets, Jan 1 $3,750,000
Amortization of unrecognized prior service cost for the year $250,000
Interest cost 8%
Employer contribution to fund $845,000
Expected (and actual) return on plan assets 10%
Required:
Prepare the December 31 journal entry to record pension expense
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