Amherst City provides a defined benefit pension plan for employees of the city electric utility, an…

Amherst City provides a defined benefit pension plan for
employees of the city electric utility, an enterprise fund. Assume
that the projected level of earnings on plan investments is
$205,000, the service cost component is $262,500, and interest on
the pension liability is $167,500 for the year. Actual returns on
plan assets for the year were $185,000, and the City is amortizing
a deferred outflow resulting from a change in plan assumptions from
a prior year in the amount of $8,750 per year.

Place Order

Prepare journal entries to record annual pension expense for the
enterprise fund. (If no entry is required for a
transaction/event, select “No Journal Entry Required” in the first
account field.)

a. Record entry for pension expense

b. Record entry for additional pension liability.

c. Record entry for amortization of deferred outflow resulting
from change in pension plan assumptions.