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Exercise 20-1 Warning Don\'t show me this message again for the assignment Ok Ca

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Exercise 20-1

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Account Titles and Explanation

Debit

Credit

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Exercise 20-1

The following information is available for the pension plan of Waterway Company for the year 2017.
Actual and expected return on plan assets $ 14,700 Benefits paid to retirees 40,800 Contributions (funding) 81,100 Interest/discount rate 10 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2017 458,000 Service cost 63,900

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Explanation / Answer

a) Pension expense Service cost 63,900 interest cost (458,000*10%) 45800 Actual (expected) return on plan assets -14700 unrecognized prior service cost amortization 7,600 pension expense 2017 102,600 b) Accounting title & Explanations Debit Credit pension expense 102,600 cash 81,100 pension asset/liability 13,900 other comprehensive income (PSC) 7,600