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Prepare the journal entry to record pension expense

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Reference no: EM132386259

Question

Wildhorse Company provides the following selected information related to its defined benefit pension plan for 2017.

Pension asset/liability (January 1) $24,700 Cr.

Accumulated benefit obligation (December 31) 396,800

Actual and expected return on plan assets 10,200

Contributions (funding) in 2017 149,400

Fair value of plan assets (December 31) 800,100

Settlement rate 10%

Projected benefit obligation (January 1) 701,700

Service cost 80,010

a.) Compute the pension expense

b.) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017. Preparation of a pension worksheet is not required. Benefits paid in 2017 were $36,500.

Reference no: EM132386259

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