In: Accounting
On December 31, 2019, Robey Company accumulated the following information for 2019 in regard to its defined benefit pension plan:
Service cost | $110,830 |
Interest cost on projected benefit obligation | 11,470 |
Expected return on plan assets | 10,390 |
Amortization of prior service cost | 2,140 |
On its December 31, 2018, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $13,000.
Required:
1. | Compute the amount of Robey’s pension expense for 2019. |
2. | Prepare all the journal entries related to Robey’s pension plan for 2019 if it funds the pension plan in the amount of (a) $114,050, (b) $113,010, and (c) $118,030. |
3. | Next Level Assuming Robey’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $54,940 what would be its ending balance? |
4. | Next Level How much would Robey need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $4,690 at the end of 2019? |
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1. Compute the amount of Robey’s pension expense for 2019.
2a. Assume Robey Company funds the pension plan in the amount of $114,050. Prepare the entries to record the pension expense for 2019 on December 31 and the amortized prior service cost for 2019 on December 31.
General Journal Instructions
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GENERAL JOURNAL
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2b. Assume Robey Company funds the pension plan in the amount of $113,010. Prepare the entries to record the pension expense for 2019 on December 31 and the amortized prior service cost for 2019 on December 31.
General Journal Instructions
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GENERAL JOURNAL
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2c. Assume Robey Company funds the pension plan in the amount of $118,030. Prepare the entries to record the pension expense for 2019 on December 31 and the amortized prior service cost for 2019 on December 31.
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GENERAL JOURNAL
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3. Assuming Robey’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $54,940 what would be its ending balance?
4. How much would Robey need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $4,690 at the end of 2019?