AC 302 Chapter 20 Question 1
Name Date
Instructor Course
Intermediate Accounting 14th Edition by Kieso Wetland and Garfield
Primer on Using Excel in Accounting by Rex A Schoolhouse
E20-1 (Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2012.
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, 2012 500,000
Service cost 60,000
Instructions:
(a) Compute pension expense for the year 2012.
Computation of pension expense:
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"(b) Prepare the journal entry to record pension expense and the employer's contribution to the pension
plan in 2012."
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USA 
India
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