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In: Accounting

Metlock Company provides the following selected information related to its defined benefit pension plan for 2017....

Metlock Company provides the following selected information related to its defined benefit pension plan for 2017.
Compute pension expense.

Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2017. Preparation of a pension worksheet is not required. Benefits paid in 2017 were $37,500

Pension asset/liability (January 1) $23,100 Cr.
Accumulated benefit obligation (December 31) 402,800
Actual and expected return on plan assets 10,800
Contributions (funding) in 2017 149,300
Fair value of plan assets (December 31) 805,500
Settlement rate 10 %
Projected benefit obligation (January 1) 706,000
Service cost

80,550

Solutions

Expert Solution

Computation of Pension Expense
Particular Amount ( $)
Service Cost                      80,550
Benefit Obligation ($706000X 10%)                      70,600
Less: Return on Planned Asset                    -10,800
Pension Expense                  1,40,350
Journal Entry
Account Tittle Debit Credit
Pension Expense                  1,40,350
Pension Asset/ Lability(bal Fig)                        8,950
Cash              1,49,300

ekkarill92 answered 2 months ago
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