Journal entry for pension expense


The given defined pension data of Rydell Corp. apply to the year 2012.

Projected benefit obligation, 1/1/12 (before amendment) $563,300

Plan assets, 1/1/12 544,300

Pension liability 19,000

On January 1, 2012, Rydell Corp., via plan amendment, grants prior service benefits encompassing a present value of 126,700

Settlement rate 10 %

Service cost 64,800

Contributions (funding) 69,300

Actual (expected) return on plan assets 59,900

Benefits paid to retirees 42,000 Prior service cost amortization for 2012 22,000 

For 2012, make a pension worksheet for Rydell Corp. which shows the journal entry for pension expense and the year-end balances in the related pension accounts.

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Finance Basics: Journal entry for pension expense
Reference No:- TGS015897

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