Exercise 201 The following information is available for the

Exercise 20-1 The following information is available for the pension plan of Carla Company for the year 2017 13,800 38,400 79,900 Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2017 Service cost 10% 7,800 452,000 54,700 Compute pension expense for the year 2017 Pension expense for 2017 Prepare the journal entry to record pension expense and the employer\'s contribution to the pension plan in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Question Attempts: 0 of 2 used

Solution

Carla Company Pension Expense Service Cost $   54,700.00 Interest cost(Projectected benefit obligation*Interest/discount rate)=($452000*10%) $   45,200.00 Expected Return on Plan assets $(13,800.00) Unrecognized prior service cost amortization $     7,800.00 Pension Expense for 2017 $   93,900.00 Journal Entries Particular Amount(Dr) Amount (Cr) Pension Expense $   93,900.00      To Cash(Contribution funding) $   79,900.00      To Prior service cost amortization $     7,800.00      To Pension assets/liability $     6,200.00