Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2015: Plan assets $400,000 Projected benefit obligation 320,000

U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2015:

Plan assets $400,000

Projected benefit obligation 320,000

U.S.M.s actuary determined that 2016 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2016, and retirees were paid $44,000 from plan assets.

Determine the following amounts at the end of 2016:

Pension Expense

Projected Benefit Obligation

Plan Assets

Net Pension Asset

Prepare journal entries to record the pension expense, funding of plan assets, and retiree benefit payments.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Kamishibai Boards A Lean Visual Management System That Supports Layered Audits

Authors: Joseph Niederstadt

1st Edition

1482205297, 978-1482205299

More Books

Students also viewed these Accounting questions