Question
U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2017. Plan assets $500,000 Projected benefit obligation 420,000
U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2017.
Plan assets | $500,000 |
Projected benefit obligation | 420,000 |
U.S.M.s actuary determined that 2018 service cost is $70,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $130,000 to the pension fund at the end of 2018, and retirees were paid $54,000 from plan assets. (Enter you answers in millions (i.e., 10,000,000 should be entered as 10).) Required:
1 to 4. Determine the following amounts at the end of 2018. 5. Prepare journal entries to record the pension expense, funding of plan assets, and retiree benefit payments.
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