ACC 620 Pension Expense and LiabilityOn December 31, 2013, Robey Company accumulated the following
Question
ACC 620 Pension Expense and LiabilityOn December 31, 2013, Robey Company accumulated the following
information for 2013 in regard to its defined benefit pension plan.
Service cost $120,000
Interest cost on projected benefit obligation 20,000
Expected return on plan assets 18,000
Amortization of prior service cost 3,000
On December 31, 2012, balance sheet, Robey had reported an accrued prepaid pension cost liability of $18,000.
Compute the amount of Robey ‘s pension expense for 2013
Robey Company
Pension Expense Calculation
December 31, 2013
Service
Interest Cost on Projected benefit obligation
Expected return on plan assets
Amortization of prior service cost
2013 pension expense
2a. Prepare all the journal entries related to Robey ‘s pension plan for 2013 if it funds the pension plan it the amount of $125,000
Record expense
Record PSC
2b. Prepare all the journal entries related to Robey ‘s pension plan for 2013. If it funds the pension plan in the amount of $121,000. For compound entries, if an amount box does not require an entry, leave it blank.
Record expense Pension Expense
Cash
Accrued/Prepaid pension Cost
Record PSC Accrued/Prepaid Pension Cost
Other Comprehension income
2c. Prepare all the journal entries related to Robey ‘s pension plan for 2013 if it funds the pension plan in the amount of $126,000. For compound entries, if an amount box does not require an entry, leave it blank.
Record expense Rent Expense
Interest Expense
Cash
Record PSC Pension Expense
Other Comprehension Income
3. Assuming Robey’s beginning 2013 Other Comprehension Income-Prior Service Cost Balance was $51,000 what would be its ending balance?
$________
4. How much would Robey need to fund its pension plan for 2013 in order to report an accrued/prepaid pension cost asset of $4,000 at the end of 2013?
$_________
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