On December 31, 2013, Robey Company accumulated the following information for 2013 in regard to its defined benefit pension plan:
On its December 31, 2012, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $11,000.
2 b. Prepare all the journal entries related to Robey\'s pension plan for 2013 if it funds the pension plan in the amount of $112,000. For compound entries, if an amount box does not require an entry, leave it blank.
Record Expense: Pension Expense (Debit)
Cash (Credit)
Accrued/Prepaid Pension Cost (Credit)
Record PSC:
Accrued/Prepaid Pension Cost (Debit)
Other Comprehensive Income: Prior Service Cost (Credit)
Solution
Debit $ Credit $ Pension Expense 115000 Cash 112000 Accrued/Prepaid Pension Cost 3000 For Recording PSC Accrued/Prepaid Pension Cost 3000 Prior Service Cost 3000 Note: + Service Cost 108000 + Interest cost on projected benefit obligation 15000 - Expected return on plan assets -11000 + Amortization of prior service cost 3000 Pension Expense to be recognised 115000 Cash = Plan Aset funding = 112000
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On December 31- 2013- Robey Company accumulated the following informat (1).docx
1. On December 31, 2013, Robey Company accumulated the following information for 2013 in
regard to its defined benefit pension plan:
On its December 31, 2012, balance sheet, Robey had reported an accrued/prepaid pension cost
liability of $11,000.
2 b. Prepare all the journal entries related to Robey's pension plan for 2013 if it funds the
pension plan in the amount of $112,000. For compound entries, if an amount box does not
require an entry, leave it blank.
Record Expense: Pension Expense (Debit)
Cash (Credit)
Accrued/Prepaid Pension Cost (Credit)
Record PSC:
Accrued/Prepaid Pension Cost (Debit)
Other Comprehensive Income: Prior Service Cost (Credit)
Service cost $108,000
Interest cost on projected benefit obligation 15,000
Expected return on plan assets 11,000
Amortization of prior service cost 3,000
Solution
Debit $ Credit $ Pension Expense 115000 Cash 112000 Accrued/Prepaid Pension Cost 3000 For
Recording PSC Accrued/Prepaid Pension Cost 3000 Prior Service Cost 3000 Note: + Service
Cost 108000 + Interest cost on projected benefit obligation 15000 - Expected return on plan
assets -11000 + Amortization of prior service cost 3000 Pension Expense to be recognised
115000 Cash = Plan Aset funding = 112000
