The Boulder Rock Company Has Provided the Following Information Pertaining

question 67

Essay

The Boulder Rock Company has provided the following information pertaining to its defined benefit plan:
• The projected benefit obligation was $2,100,000 on January 1,2015.
• Recognition of prior service cost during 2015 was $150,000.
• Service cost for 2015 was $300,000.
• Plan assets on January 1,2015 totaled $1,500,000.
• The expected return on plan assets was 10%.
• The actual return on plan assets was 8%.
• The settlement/discount rate was 8%.
• The December 31,2015 contribution to the plan asset fund was $450,000.
• Benefits paid to retirees during 2015 totaled $225,000.
Required:
1.Determine Boulder's pension expense for 2015.
2.Determine the projected benefit obligation (PBO)as of December 31,2015.
3.Prepare the journal entry to record pension expense and the funding for the year ended December 31,2015.
4.Determine the balance of the pension plan assets.
5.What should be reported on the December 31,2015 balance sheet with respect to the funded status of the defined benefit pension plan?