Axel Corporation has a defined benefit pension plan.At January 1,2012,the following balances exist:
$\begin{array}{ll}
\text { Accrued benefit obligation } & \$ 2,480,000 \\
\text { Planassets (at market value) } & 1,880,000 \\
\text { Unamortized past service cost from. plan initiation } & 210,000 \\
\text { Unrecognized net loss from actuarial gains and losses } & 348,000 \\
\text { Interest rate on obligations } & 4 \%
\end{array}$ For the year ended December 31,2012,the current service cost as determined by an appropriate actuarial cost method was $265,000.A change in actuarial assumptions created a gain of $16,000 in 2012.The expected return on plan assets was $65,200; however,the actual return is $63,700.The expected period of full eligibility at January 1,2012 (i.e.,the vesting period)is 10 years,while the expected average remaining service life is 20 years.Axel paid $220,700 to the pension trustee in December 2012.The company recognizes only the minimum amount of corridor amortization.
Requirement:
Prepare the journal entry to record pension expense for 2012.

Question

Axel Corporation has a defined benefit pension plan.At January 1,2012,the following balances exist:
 $\begin{array}{ll}
\text { Accrued benefit obligation } & \$ 2,480,000 \\
\text { Planassets (at market value) } & 1,880,000 \\
\text { Unamortized past service cost from. plan initiation } & 210,000 \\
\text { Unrecognized net loss from actuarial gains and losses } & 348,000 \\
\text { Interest rate on obligations } & 4 \%
\end{array}$ For the year ended December 31,2012,the current service cost as determined by an appropriate actuarial cost method was $265,000.A change in actuarial assumptions created a gain of $16,000 in 2012.The expected return on plan assets was $65,200; however,the actual return is $63,700.The expected period of full eligibility at January 1,2012 (i.e.,the vesting period)is 10 years,while the expected average remaining service life is 20 years.Axel paid $220,700 to the pension trustee in December 2012.The company recognizes only the minimum amount of corridor amortization.
Requirement:
Prepare the journal entry to record pension expense for 2012.

Quizplus · Accepted Answer

The Answer of Axel Corporation has a defined benefit pension plan.At January 1,2012,the following balances exist:
 $\begin{array}{ll}
\text { Accrued benefit obligation } & \$ 2,480,000 \\
\text { Planassets (at market value) } & 1,880,000 \\
\text { Unamortized past service cost from. plan initiation } & 210,000 \\
\text { Unrecognized net loss from actuarial gains and losses } & 348,000 \\
\text { Interest rate on obligations } & 4 \%
\end{array}$ For the year ended December 31,2012,the current service cost as determined by an appropriate actuarial cost method was $265,000.A change in actuarial assumptions created a gain of $16,000 in 2012.The expected return on plan assets was $65,200; however,the actual return is $63,700.The expected period of full eligibility at January 1,2012 (i.e.,the vesting period)is 10 years,while the expected average remaining service life is 20 years.Axel paid $220,700 to the pension trustee in December 2012.The company recognizes only the minimum amount of corridor amortization.
Requirement:
Prepare the journal entry to record pension expense for 2012.

Axel Corporation Has a Defined Benefit Pension Plan For the Year Ended December 31,2012,the Current Service Cost as Following