Solution-Prepare journal entries to record the pension

Prepare journal entries to record the pension expense

Reference no: EM131002722

U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2010.
U.S.M.'s actuary determined that 2011 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2011, and retirees were paid $44,000 from plan assets.

Required:

Determine the following amounts at the end of 2011.

1. Pension expense
2. Projected benefit obligation
3. Plan assets
4. Net pension asset or net pension liability
5. Prepare journal entries to record the pension expense, funding of plan assets, and retiree benefit payments.

Reference no: EM131002722

Questions Cloud

What is the resistance of the wire after stretching : A metal wire 1.50 m long has a circular cross section of radius 0.35 mm and an end-to-end resistance of 35.0 Ohms. The metal wire is then stretched uniformly so that its cross-section is still circular but its total length is now 12.00 m. What is..

What is the resistance of a wire made of the same material : A metallic wire with length 10 m has resistance of 1 Ω. What is the resistance of a wire made of the same material and with the same diameter but 20 m long?

What was the most significant advance of windows and why : What was the biggest mistake Microsoft made in Windows development over the last 30 years and why?

Your critique of the research strategy must answer : The purpose of this assignment is to critique the research methodology of a research thesis or journal article or conference paper in order to develop awareness of best practice research in your discipline.

Prepare journal entries to record the pension expense : Prepare journal entries to record the pension expense, funding of plan assets, and retiree benefit payments.

What is the speed of the meteoroid : A meteoroid passes through a position in space where its speed is very small relative to Earth's and it is at a perpendicular distance of 19 Earth radii above Earth's surface. The meteoroid is moving in such a way that Earth captures it. What is t..

What force does the wire exert to keep the rod horizontal : A mass is hung from the free end of the rod to produce a downward force of Fo. A wire supports the rod at 20 cm from the pivot point. What force Fi does the wire exert to keep the rod horizontal? How large, and in which direction, is the force at ..

Describe how you would design a logistics network : Describe how you would design a logistics network consisting of only one warehouse. In the discussion, include the steps you need to take in order to design the optimal network. What information and data is needed to make this determination? What str..

What amount will electronic distribution report in its 2011 : What amount will Electronic Distribution report in its 2011 balance sheet as a net pension asset or net pension liability?

User Account

All Pages

Prepare journal entries to record the pension expense

Reference no: EM131002722

Reference no: EM131002722

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT