The journal entry a company uses to record partially funded pension rights for its salaried employees at the end of the year is
A) debit Salaries Expense; credit Cash
B) debit Pension Expense; credit Unfunded Pension Liability
C) debit Pension Expense; credit Unfunded Pension Liability and Cash
D) debit Pension Expense; credit Cash

Question

Quizplus · Accepted Answer

The correct entry involves debiting Pension Expense to recognize the cost and crediting both Unfunded Pension Liability for the portion not yet funded and Cash for the portion that is funded.

The Journal Entry a Company Uses to Record Partially Funded