Compute the amount of pension expense to be reported

Assignment Help Financial Accounting

Reference no: EM13133917

Presented below is information related to Jones Department Stores, Inc. pension plan for 2011.

Accumulated benefit obligation (at year-end) $600,000
Service cost 520,000
Funding contribution for 2011 500,000
Settlement rate used in actuarial computation 10%
Expected return on plan assets 9%
Amortization of PSC (due to benefit increase) 100,000
Amortization of net gains 48,000
Projected benefit obligation (at beginning of period) 480,000
Market-related (and fair) value of plan assets (at beginning of period) 360,000

Instructions

(a) Compute the amount of pension expense to be reported for 2011. (Show computations.)

(b) Prepare the journal entry to record pension expense and the employer's contribution for 2011

Reference no: EM13133917

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