Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 20: Question 4BE (page 1162)

Campbell Soup Company reported pension expense of \(73 million and contributed \)71 million to the pension fund. Prepare Campbell Soup Company’s journal entry to record pension expense and funding, assuming Campbell has no OCI amounts

Short Answer

Expert verified

Journal entry is the type of entry an organization records for each monetary transaction.Organizations prepare journal books according to accounting principles with their respective occurrence date.

Step by step solution

01

Given the amounts:

Particulars

Amounts (in millions)

Pension Expense

$73

Contribution

$71

02

Journal entry

Campbell Soup Company
Journal Entries

Date

Particulars

Debit (in millions)

Credit (in millions)

Pension Expense

$73

Pension Assets/Liability

$2

Cash

$71

(To record the pension expense and the funding)

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

At December 31, 2017, Besler Corporation had a projected benefit obligation of \(560,000, plan assets of \)322,000, and prior service cost of $127,000 in accumulated other comprehensive income. Determine the pension asset/liability at December 31, 2017.

What factors must be considered by the actuary in measuring the amount of pension benefits under a defined benefit plan?

Towson Company has experienced tough competition for its talented workforce, leading it to enhance the pension benefits provided to employees. As a result, Towson amended its pension plan on January 1, 2017, and granted past service costs of \(250,000. Current service cost for 2017 is \)52,000. Interest expense is \(18,000, and interest revenue is \)5,000. Actual return on assets in 2017 is \(3,000. What is Towson’s pension expense for 2017? (a) \)65,000. (c) \(317,000. (b) \)302,000. (d) $315,000.

Tevez Company experienced an actuarial loss of \(750 in its defined benefit plan in 2017. For 2017, Tevez’s revenues are \)125,000, and expenses (excluding pension expense of \(14,000, which does not include the actuarial loss) are \)85,000. Prepare Tevez’s statement of comprehensive income for 2017.

Question: What is meant by “past service cost”? When is past service cost recognized as pension expense?
See all solutions

Recommended explanations on Business Studies Textbooks

Strategic Direction

Read Explanation

Organizational Behavior

Read Explanation

Managers

Read Explanation

Organizational Communication

Read Explanation

Financial Performance

Read Explanation

Intermediate Accounting

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free