Computation of pension cost and journal entries

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Computation of Pension Cost and Journal Entries

The accountants for Eden Financial Services provide you with the following detailed information at December 31, 2008. Based on these data, prepare the journal entries related to the accrual and funding of pension expense for 2008.

Service cost                                                                 

$ 52,000

Actual return on pension plan assets                                               

81,000

Interest cost                                                                  

59,000

Excess of expected return over actual return on pension plan assets                        

15,000

Amortization of deferred pension loss from prior years                                   

24,000

Amortization of prior service cost                                                 

36,000

Contribution to pension fund                                                     

100,000

 

Reference no: EM13553597

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