Howard Corp. sponsors a defined-benefit pension plan for its employees. On Janua

Question

Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2015, the following balances related to this plan. Plan assets (fair value) $550,000 Projected benefit obligation 600,000 Pension asset/liability 50,000 Cr. Unamortized Prior service Cost 75,000 OCI – Loss 65,000 As a result of the operation of the plan during 2015, the actuary provided the following additional data at December 31, 2015. Service cost for 2015 $ 70,000 Actual return on plan assets in 2015 45,000 Amortization of prior service cost 15,000 Contributions in 2015 115,000 Benefits paid retirees in 2015 80,000 Settlement rate 7% Expected return rate on plan assets 8% Average remaining service life of active employees 5 years Instructions (a) Compute pension expense for Howard Corp. for the year 2015 by preparing a pension worksheet. Prepare the worksheet on Excel in good form. (b) Prepare the journal entry for pension expense for 2015.

Explanation / Answer

Howard Corp. sponsors a defined-benefit pension plan for its employees. On Janua

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.