Question
Veldre Company provides the following information about its defined benefit pension plan for the year 2015. Service cost 90,000 Contribution to the plan 105,000 Benefits
Veldre Company provides the following information about its defined benefit pension plan for the year 2015.
| Service cost | 90,000 |
| Contribution to the plan | 105,000 |
| Benefits paid | 40,000 |
| Plan assets at January 1, 2015 | 640,000 |
| Defined benefit obligation at January 1, 2015 | 700,000 |
| Discount (interest) rate | 10% |
Prepare a pension worksheet inserting January 1, 2015, balances, showing December 31, 2015, balances.(Do not leave any numeric answer field blank. Enter 0 for amounts.)
| VELDRE COMPANY Pension Worksheet2015 | |||||||||||||||
| General Journal Entries | Memo Record | ||||||||||||||
| Items | Annual Pension Expense | Cash | Pension Asset/Liability | Defined Benefit Obligation | Plan Assets | ||||||||||
| Balance, January 1, 2015 | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | ||||||||||
| Service cost | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | ||||||||||
| Interest expense | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | ||||||||||
| Interest revenue | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | ||||||||||
| Contributions | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | ||||||||||
| Benefits | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | ||||||||||
| Journal entry for 2015 | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | Dr.Cr. | ||||||||||
| Balance, Dec. 31, 2015 | Dr.Cr. | Dr.Cr. | Dr.Cr. |
Prepare the journal entry recording pension expense.(Credit account titles are automatically indented when the amount is entered.Do not indent manually.)
| Account Titles and Explanation | Debit | Credit |
|
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Lawrence Tomassini
5th Edition
0077282078, 9780077282073
