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The following information is available for the pension plan of Flounder Company for the year 2020

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The following information is available for the pension plan of Flounder Company for the year 2020.

 

Actual and expected return on plan assets $ 14,100

Benefits paid to retirees 41,400

Contributions (funding) 90,300

Interest/discount rate 10 %

Prior service cost amortization 8,000

Projected benefit obligation, January 1, 2020 523,000

Service cost 54,600

 

 

 

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(a)

 

Correct answer. Your answer is correct.

   

Compute pension expense for the year 2020.

 

Pension expense for 2020

$100,800

 

 

 

 

 

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(b)

Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

 

Account Titles and Explanation Debit Credit

enter an account title enter a debit amount enter a credit amount

enter an account title enter a debit amount enter a credit amount

enter an account title enter a debit amount enter a credit amount

enter an account title enter a debit amount enter a credit amount