Jenine Company Sponsors a Noncontributory,defined Benefit Pension Plan

question 63

Short Answer

Jenine Company sponsors a noncontributory,defined benefit pension plan.On December 31,2014,the end of the company's accounting period,the company received the projected benefit obligation report from the independent actuary.The following data were included:

Based on this information,the January 1,2014,balance for the PBO and the service cost for the year ended December 31,2014,were

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Definitions:

Expense Accounts

Accounts used to record the consumption of economic benefits during the operational period, contributing to revenue generation.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period before transferring the balance to retained earnings.

Revenue Account

An account that tracks the income earned by a company from its normal business operations, excluding expenses.

Debit

The left side of an account.