The Donna Company adopted a defined benefit pension plan on January 1, 2014, and prior service credit was granted to employees. As of January 1, 2014, the prior service cost is $68,250. The unrecognized prior service cost is amortized by the straight-line method over the remaining 15-year service life of the company's active employees. Funding for the pension plan was $170,745 and $186,933 at December 31, 2014 and 2015, respectively.

Required:
Prepare the journal entries to record net periodic pension expense and the funding as of December 31, 2014 and 2015. Show computations and round answers to the nearest dollar.

Question

The Donna Company adopted a defined benefit pension plan on January 1, 2014, and prior service credit was granted to employees. As of January 1, 2014, the prior service cost is $68,250. The unrecognized prior service cost is amortized by the straight-line method over the remaining 15-year service life of the company's active employees. Funding for the pension plan was $170,745 and $186,933 at December 31, 2014 and 2015, respectively.

Required:
Prepare the journal entries to record net periodic pension expense and the funding as of December 31, 2014 and 2015. Show computations and round answers to the nearest dollar.

Quizplus · Accepted Answer

The Answer of The Donna Company adopted a defined benefit pension plan on January 1, 2014, and prior service credit was granted to employees. As of January 1, 2014, the prior service cost is $68,250. The unrecognized prior service cost is amortized by the straight-line method over the remaining 15-year service life of the company's active employees. Funding for the pension plan was $170,745 and $186,933 at December 31, 2014 and 2015, respectively.

Required:
Prepare the journal entries to record net periodic pension expense and the funding as of December 31, 2014 and 2015. Show computations and round answers to the nearest dollar.

The Donna Company Adopted a Defined Benefit Pension Plan on January