Reference no: EM132711739
Problem - Look Ahead Co. has a defined benefit pension plan that was put into place five years ago. Specific balances and assumptions as of December 31, 2019 are shown in the table below. The expected return on plan assets was 12%.
PBO, 1/1/2019 4,100,000
Service costs 954,000
Interest costs (6%) 246,000
Payments to retirees (1,000,000)
PBO, 12/31/2019 4,300,000
Plan assets, 1/1/2019 4,000,000
Actual return 450,000
Cash contribution 800,000
Payments to retirees (1,000,000)
Plan assets, 12/31/2019 4,250,000
a) Calculate pension expense for 2019?
b) Prepare all the necessary journal entries at the end of 12/31/2019?
c) What is the balance in the Prepaid/Accrued Pension Cost account at the end of December 31, 2019? Indicate the amount and whether it is on the DEBIT or CREDIT side.