Wk 4 Acc - Please complete the following exercises in...

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E20-1 (Pension Expense, Journal Entries) The following information is available for the pension plan of Brady Company for the year 2010. Actual and expected return on plan assets $ 15,000 $15,000.00 Interest Benefits paid to retirees $40,000.00 $500,000.00 Contributions (funding) $90,000.00 0.1 Interest/discount rate 10% $50,000.00 Prior service cost amortization $8,000.00 Projected benefit obligation, January 1, 2010 $500,000.00 Service cost $60,000.00 Instructions (a) Compute pension expense for the year 2010. Service cost $60,000.00 Interest Cost $50,000.00 Expected ROA $(15,000.00) Prior SC Amoritization $8,000.00 Pension Expense for 2010 $103,000.00 (b) Prepare the journal Pension Expense $103,000.00 Cash $90,000.00 Pension Asset/Liability $5,000.00 Other Comprehensive Income $8,000.00 $103,000.00 $103,000.00 E20-13 (Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a defined benefit pension plan. The corporation’s actuary provides the
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This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Dubai during the Spring '11 term at Abu Dhabi University.

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