Larson Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2018, the following balances related to th
is plan. Plan assets (market-related value) $270,000 Projected benefit obligation 340,000 Pension asset/liability 70,000 Cr. Prior service cost 90,000 OCI-Loss 39,000 Accounting for Pensions and Postretirement Benefits As a result of the operation of the plan during 2018, the actuary provided the following additional data for 2018. Service cost $45,000 Actual return on plan assets 27,000 Amortization of prior service cost 12,000 Contributions 65,000 Benets paid retirees 41,000 Settlement rate 7% Expected return on plan assets 8% Average remaining service life of active employees 10 years Instructions
a) Compute pension expense for Larson Corp. for the year 2018 by preparing a pension worksheet that shows the journal entry for pension expense.
b) Indicate the pension amounts reported in the financial statements.
a) Compute pension expense for Larson Corp. for the year 2018 by preparing a pension worksheet that shows the journal entry for pension expense.
b) Indicate the pension amounts reported in the financial statements.
1 answer:
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