Intermediate Accounting
The following information is available for the pension plan of Jones Company for the year 2014.
|
Actual and expected return on plan assets
|
$ 15,000
|
|
Benefits paid to retirees
|
40,000
|
|
Contributions (funding)
|
90,000
|
|
Interest/discount rate
|
10%
|
|
Prior service cost amortization
|
8,000
|
|
Projected benefit obligation, January 1, 2014
|
500,000
|
|
Service cost
|
60,000
|
Instructions
(a) Construct a new pension worksheet to submit in Excel or Word format, using the sample worksheet below. Complete sheet.
(b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2014.
(a)
(b) Prepare the journal required journal entry.