Exercise 20-4 The following facts apply to the pension plan of Wildhorse Inc. for the...
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Accounting
Exercise 20-4
The following facts apply to the pension plan of Wildhorse Inc. for the year 2017.
Plan assets, January 1, 2017
$487,400
Projected benefit obligation, January 1, 2017
487,400
Settlement rate
8
%
Service cost
40,300
Contributions (funding)
26,600
Actual and expected return on plan assets
47,000
Benefits paid to retirees
31,800
Using the preceding data, compute pension expense for the year 2017. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2017 and the year-end balances in the related pension accounts. (Enter all amounts as positive.)
WILDHORSE INC. Pension Worksheet-2017 General Journal Entries Memo Record Annual Pension Expense Pension Asset/ Projected Benefit Obligation Plan Assets Items Balance, January 1, 2017 Service cost Interest cost Actual return Contributions Benefits Cash Journal entry, December 31 Balance, December 31, 2017
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