Question
Take-home questions (16 points) Presented below is information related to Jones Department Stores, Inc. pension plan for 2013. Projected benefit obligation (at beginning of year)
Take-home questions (16 points) Presented below is information related to Jones Department Stores, Inc. pension plan for 2013. Projected benefit obligation (at beginning of year) $600,000 Fair value of plan assets (at beginning of year) 560,000 Prior service costs due to plan change (1/1/13) (impact on PBO) 100,000 Service cost 52,000 Funding contribution for 2013 48,000 Settlement rate used in actuarial computation 10% Expected return on plan assets 10% Actual return on plan assets 58,000 Amortization of PSC in 2013 10,000 Benefit payments 37,000 Instructions (a) Prepare the pension worksheet and (b) Compute the amount of pension expense to be reported for 2013. (Show computations.) (c) Prepare the journal entry to record pension expense and the employer's contribution for 2013.
Take-home questions (16 points) Presented below is information related to Jones Department Stores, Inc. pension plan for 2013. Projected benefit obligation (at beginning of year) Fair value of plan assets (at beginning of year) Prior service costs due to plan change (1/1/13) (impact on PBO) Service cost Funding contribution for 2013 Settlement rate used in actuarial computation Expected return on plan assets Actual return on plan assets Amortization of PSC in 2013 Benefit payments $600,000 560,000 100,000 52,000 48,000 10% 10% 58,000 10,000 37,000 Instructions (a) Prepare the pension worksheet and (b) Compute the amount of pension expense to be reported for 2013. (Show computations.) (c) Prepare the journal entry to record pension expense and the employer's contribution for 2013Step by Step Solution
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