Welsa Manufacturing. Inc. offers a noncontributory, defined-benefit pension plan to

Welsa Manufacturing. Inc. offers a noncontributory, defined-benefit pension plan to its employees. The average remaining service life of employees is 10 years. The company provides you with the following information for the year ended December 31, 2019:

Employer’s contribution at end of year ……………………………………………………  $1,600,000

Service cost ……………………………………………………………………………………………..       600,000

Projected benefit obligation – beginning of the year …………………………………    6,043,200

Plan assets (at fair value market-related value) beginning of the year ………    4,000,000

Expected return on plan assets ………………………………………………………………..               9%

Settlement rate ………………………………………………………………………………………..               8%

Actual return on plan assets ……………………………………………………………………     $360,000

Cost of plan amendment retroactive to January 1 ……………………………………       400,000

There were no benefits were paid during the year.

Required:

a. Compute the total pension expense recognized in 2019. Assume the prior service cost is amortized over the average remaining service life of the employees.

b. Prepare the journal entry to record pension expense for the year ended December 31, 2019.

c. Indicate the amounts that are reported on the income statement and the for 2019.

How Our Website Works

1. FILL IN OUR SIMPLE ORDER FORM

It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

2. PROCEED WITH THE PAYMENT

All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.

3. WRITER ASSIGNMENT

Next, we match up your order details with the most qualified freelance writer in your field.

4. WRITING PROCESS

Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!

5. DELIVERY

Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.