The following facts apply to the pension plan of Novak Inc. for the year 2020. Plan assets, January 1, 2020 $490,400 Projected benefit obligation, January 1, 2020 490,400 Settlement rate 8 % Service cost 38,500 Contributions (funding) 27,300 Actual and expected return on plan assets 48,000 Benefits paid to retirees 32,500 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.) NOVAK INC. Pension Worksheet—2020 General Journal Entries Memo Record Items Annual Pension Expense Cash Pension Asset/
The following facts apply to the pension plan of Novak Inc. for the year 2020. Plan assets, January 1, 2020 $490,400 Projected benefit obligation, January 1, 2020 490,400 Settlement rate 8 % Service cost 38,500 Contributions (funding) 27,300 Actual and expected return on plan assets 48,000 Benefits paid to retirees 32,500 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.) NOVAK INC. Pension Worksheet—2020 General Journal Entries Memo Record Items Annual Pension Expense Cash Pension Asset/
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes
Section: Chapter Questions
Problem 21E
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The following facts apply to the pension plan of Novak Inc. for the year 2020.
Plan assets, January 1, 2020 | $490,400 | ||
Projected benefit obligation, January 1, 2020 | 490,400 | ||
Settlement rate | 8 | % | |
Service cost | 38,500 | ||
Contributions (funding) | 27,300 | ||
Actual and expected return on plan assets | 48,000 | ||
Benefits paid to retirees | 32,500 |
Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the
NOVAK INC.
Pension Worksheet—2020 |
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General Journal Entries
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Memo Record
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Items
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Annual Pension
Expense |
Cash
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Pension Asset/
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