Calculating Pension Expense and Journal Entries
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Please help me with the given accounting problem:
(Pension Expense, Journal Entries) The following information is available for the pension plan of Kiley Company for the year 2004.
Actual and expected return on plan assets $ 12,000
Benefits paid to retirees 40,000
Contributions (funding) 95,000
Interest/discount rate 10%
Prior service cost amortization 8,000
Projected benefit obligation, January 1, 2004 500,000
Service cost 60,000
Instructions
(a) Compute pension expense for the year 2004.
(b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2004.
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Solution Summary
This solution shows how to calculate the pension expenses given the information about the pension plan. It also shows how the pension expenses would be recorded in the accounts.
Solution Preview
See the attached file for complete solution. The text here may not be copied exactly as some of the symbols / tables may not print. Thanks
(a) Compute pension expense for the year ...
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