(25 pts) Rollo Company maintains a defined benefit pension with First Hartford Trust. Below are...
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(25 pts) Rollo Company maintains a defined benefit pension with First Hartford Trust. Below are the balances reported by First Hartford on January 1, 2019:
Plan Benefit Obligation $520,000 Plan Assets $650,000
At the beginning of 2019, First Hartford informed Rollo that due to amending the program for prior service for new employees, they need to deposit an additional $180,000. Other matters for 2019 are:
The settlement rate is 10%. The current service cost is $40,000. Expected earnings are 10% on beginning plan assets. Actual earnings are $62,000. There is an expected loss. Prior service cost amortization is $25,000. First Hartford Trust paid retirement benefits of $35,000. Rollo funded the plan $120,000.
Prepare a pension worksheet below:
Prepare the pension expense entry. Dr. Cr.
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