Question

U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2017.

Plan assets	$580,000
Projected benefit obligation	500,000

U.S.M.’s actuary determined that 2018 service cost is $78,000. Both the expected and actual rate of return on plan assets are 10%. The interest (discount) rate is 5%. U.S.M. contributed $138,000 to the pension fund at the end of 2018, and retirees were paid $62,000 from plan assets. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).)

Required:

1 to 4. Determine the following amounts at the end of 2018.
5. Prepare journal entries to record the pension expense, funding of plan assets, and retiree benefit payments.

Answer 1