Prepare journal entry to adjust prepaid pension cost account

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Reference no: EM131969668

Question: At the end of the current year, Chelsey Company has a projected benefit obligation of $600,000 for its pension plan, and the fair value of its pension plan assets is $580,000. Chelsey has a credit balance of $32,000 in its Accrued/Prepaid Pension Cost account. Prepare the journal entry to adjust it's Accrued/Prepaid Pension Cost Account. Assume that the difference between the projected benefited obligation and the fair value of the pension plan assets is due to the actual return on plan assets being different from the expected return on plan assets.

Reference no: EM131969668

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