The following information is available for the pension plan of Radcliffe Company for the year 2019. Interest revenue on plan assets $ 15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Discount (interest) rate 10% Defined benefit obligation, January 1, 2019 500,000 Service cost 60,000 Instructions a. Compute pension expense for the year 2019. b. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019.

The following information is available for the pension plan of Radcliffe Company for the year 2019. Interest revenue on plan assets $ 15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Discount (interest) rate 10% Defined benefit obligation, January 1, 2019 500,000 Service cost 60,000 Instructions a. Compute pension expense for the year 2019. b. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7E

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