Question

For 2017, Carson Majors Inc. had pension expense of \(77 million and contributed \)55 million to the pension fund. Which of the following is the journal entry that Carson Majors would make to record pension expense and funding? (a) Pension Expense 77,000,000 Pension Asset/Liability 22,000,000 Cash 55,000,000 (b) Pension Expense 77,000,000 Pension Asset/Liability 22,000,000 Cash 99,000,000 (c) Pension Expense 55,000,000 Pension Asset/Liability 22,000,000 Cash 77,000,000 (d) Pension Expense 22,000,000 Pension Asset/Liability 55,000,000 Cash 77,000,000

Short answer

Web self-service is an online pension platform an organization maintains for its employees. Employees can use this service to register, contribute, and deposit additional pension expenses to the pension account.

Step-by-step solution

Correct Answer

Option (a) Pension Expense 77,000,000 Pension Asset/Liability 22,000,000 Cash 55,000,000 is the correct answer.

The following journal entry will be passed to record the pension expense and funding

funding

Carson Majors Inc
Journal Entry
Date	Particulars	Debit	Credit
2017	Pension Expense	$77,000,000
	Pension asset/liability $\$77,000,000-\$55,000,000$		$22,000,000
	Cash		$55,000,000
	(To record the pension expense and the funding for the year 2017)