Measuring and recording pension expense. Kessler, Inc.

6. Measuring and recording pension expense.Kessler, Inc. received the following information from its pension plan trustee concerning the operation of the company’s defined-benefit pension plan for the year ended December 31, 2011:January 1, 2011 December 31, 2011Projected benefit obligation $2,500,000 $2,850,000Market-related asset value 1,250,000 1,600,000Accumulated benefit obligation 1,930,000 2,620,000Accumulated OCI – (PSC) 540,000 300,000The service cost component for 2011 is $150,000 and the amortization of prior service cost is $240,000. The company’s actual funding of the plan in 2011 amounted to $510,000. The expected return on plan assets and the settlement rate were both 8%.Instructions(a) Determine the pension expense to be reported in 2011.(b) Prepare the journal entry to record pension expense and the employers’ contribution to the pension plan in 2011.

Order the answer to view it

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized