In: Accounting
Ivanhoe Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.
January 1, 2017 | December 31, 2017 | |||
Vested benefit obligation | $1,500 | $1,940 | ||
Accumulated benefit obligation | 1,940 | 2,780 | ||
Projected benefit obligation | 2,480 | 3,350 | ||
Plan assets (fair value) | 1,670 | 2,650 | ||
Settlement rate and expected rate of return | 10% | |||
Pension asset/liability | 810 | ? | ||
Service cost for the year 2017 | 390 | |||
Contributions (funding in 2017) | 690 | |||
Benefits paid in 2017 | 200 |
Prepare the journal entries at December 31, 2017, to record pension expense and related pension transactions
ACCOUNT TITLE | DEBIT | CREDIT |