E19.1 (LO1, 2) Pension Expense, Journal Entries
The following information is available for the pension plan of Radcliffe Company for the
year 2025.
Actual and expected rate of return on plan assets $ 15,000
Benefits paid to retirees 40,000
Contributions (funding) 90,000
Interest/discount rate 10%
Prior service cost amortization $ 8,000
Projected benefit obligation, January 1, 2020 500,000
Service cost 60,000
Instructions
a. Compute pension expense for the year 2025.
b. Prepare the journal entry to record pension expense and the employer's
contribution to the pension plan in 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a
cell), into the yellow shaded input cells.
a. Computation of pension expense:
b. Debit Credit
, Solution: E19.1 (LO1, 2) Pension Expense, Journal Entries
The following information is available for the pension plan of Radcliffe Company for the
year 2025.
Actual and expected rate of return on plan assets $ 15,000
Benefits paid to retirees 40,000
Contributions (funding) 90,000
Interest/discount rate 10%
Prior service cost amortization $ 8,000
Projected benefit obligation, January 1, 2020 500,000
Service cost 60,000
Instructions
a. Compute pension expense for the year 2025.
b. Prepare the journal entry to record pension expense and the employer's
contribution to the pension plan in 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a
cell), into the yellow shaded input cells.
a. Computation of pension expense: $ 103,000
b. Debit Credit
Pension Expense 103,000
Cash 90,000
Pension Asset/Liability 5,000
Other Comprehensive Income (PSC) 8,000
The following information is available for the pension plan of Radcliffe Company for the
year 2025.
Actual and expected rate of return on plan assets $ 15,000
Benefits paid to retirees 40,000
Contributions (funding) 90,000
Interest/discount rate 10%
Prior service cost amortization $ 8,000
Projected benefit obligation, January 1, 2020 500,000
Service cost 60,000
Instructions
a. Compute pension expense for the year 2025.
b. Prepare the journal entry to record pension expense and the employer's
contribution to the pension plan in 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a
cell), into the yellow shaded input cells.
a. Computation of pension expense:
b. Debit Credit
, Solution: E19.1 (LO1, 2) Pension Expense, Journal Entries
The following information is available for the pension plan of Radcliffe Company for the
year 2025.
Actual and expected rate of return on plan assets $ 15,000
Benefits paid to retirees 40,000
Contributions (funding) 90,000
Interest/discount rate 10%
Prior service cost amortization $ 8,000
Projected benefit obligation, January 1, 2020 500,000
Service cost 60,000
Instructions
a. Compute pension expense for the year 2025.
b. Prepare the journal entry to record pension expense and the employer's
contribution to the pension plan in 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a
cell), into the yellow shaded input cells.
a. Computation of pension expense: $ 103,000
b. Debit Credit
Pension Expense 103,000
Cash 90,000
Pension Asset/Liability 5,000
Other Comprehensive Income (PSC) 8,000
