Exercise 20-1 The following information is available for the pension plan of Pro

Question

Exercise 20-1 The following information is available for the pension plan of Pronghorn Company for the year 2017. $15,200 38,700 90,400 Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2017 Service cost 10% 8,800 538,000 59,300 Compute pension expense for the year 2017 Pension expense for 2017 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

Explanation / Answer

Answer

1 ) pension expense for 2017

53800  

2 )

particulars amount service cost 59300 interest cost ( 538000 * 10 % )

53800  

expected return on plan assets - 15200 unrecognised prior service cost amortization 8800 pension expense for 2017 106700

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