Joan, Inc. started a pension plan on January 1, 2016. At that date, prior service cost of $1,100,000 was recognized as a result of prior service credit granted to existing employees. At December 31, 2016, the following information was available: Required:
a. Compute the pension expense for 2016.
b. Prepare appropriate journal entries for 2016.

Question

Joan, Inc. started a pension plan on January 1, 2016. At that date, prior service cost of $1,100,000 was recognized as a result of prior service credit granted to existing employees. At December 31, 2016, the following information was available:  Required: 
a. Compute the pension expense for 2016.
b. Prepare appropriate journal entries for 2016.

Quizplus · Accepted Answer

The Answer of Joan, Inc. started a pension plan on January 1, 2016. At that date, prior service cost of $1,100,000 was recognized as a result of prior service credit granted to existing employees. At December 31, 2016, the following information was available:  Required: 
a. Compute the pension expense for 2016.
b. Prepare appropriate journal entries for 2016.

Joan, Inc Started a Pension Plan on January 1, 2016