Pension Data for the Ben Franklin Company Include the Following

question 24

Essay

Pension data for the Ben Franklin Company include the following for the current calendar year:
Discount rate, 8%
Expected return on plan assets, 10%
Actual return on plan assets, 9%
Service cost $200,000
Required:
1) Determine pension expense for the year.
2) Prepare the journal entries to record pension expense and funding for the year.
$$\begin{array}{l}\text { January 1: }\\\begin{array} { l r } \text { PBO } & \$ 1,400,000 \\\text { ABO } & 1,000,000 \\\text { Plan assets } & 1,500,000 \\\text { Amortization of prior service cost } & 20,000 \\\text { Amortization of net gain } & 4,000 \\\text { cember 31: } & \$ 220,000 \\\text { Cash contributions to pension fund } & 240,000\end{array}\end{array}$$

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Definitions:

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Social and behavioral norms that are widely considered appropriate for individuals of a specific sex within a given culture.

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