The village of Welch’s general government employees participate in the village’s defined contribution plan. During 2019,...
The village of Welch’s general government employees participate in the village’s defined contribution plan. During 2019, the village made $800,000 in cash contributions to its employees’ individual defined contribution pension retirement accounts. Based on benefit terms, the village of Welch needs to contribute an additional $100,000 during 2019, which had not been contributed by year end. Make the journal entries to (1) record the cash contributions and (2) record any required year-end accrual. (Assume all entries are made in the village of Welch’s General Fund.)
To record the cash contributions.
To record the year-end accrual.
Homework Answers
The pensions accounting treatment for defined benefit plans requires:
- To determine the fair value of the assets and liabilities of the pension plan at the end of the year
- To determine the amount of pension expense for the year to be reported on the income statement
- The net asset or liability position of the pension plan on a fair value basis.
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The village of Welch’s general government employees participate
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