Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / On January 1 2013 Parkway Company adopted a defined benefit pension plan At that time Park...

On January 1 2013 Parkway Company adopted a defined benefit pension plan At that time Parkway awarded

On January 1, 2013, Parkway Company adopted a defined benefit pension plan. At that time, Parkway awarded retroactive benefits to its employees, resulting in a prior service cost of $2,180,000 on that date (which it did not fund). Parkway decided to amortize this cost by the straight-line method over the 16-year average remaining service life of its active participating employees. Parkway s actuary and funding agency have also provided the following additional information for 2013 and 2014: Parkway contributed $670,000 and $700,000 to the pension fund at the end of 2013 and 2014, respectively. There are no other components of Parkway s pension expense. At the end of 2014, the projected benefit obligation was $3,359,800 and the fair value of the pension plan assets was $1,430,300. Required: 1. Compute the amount of Parkway s pension expense for 2013 and 2014. 2. Prepare all the journal entries related to Parkway s pension plan for 2013 and 2014. 3. What is the total accrued/prepaid pension cost at the end of 2014? Is it an asset or a liability?

Apr 22 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions