ZuoTi.Pro
Question

This question has been posted before with multiple answers provided. Please check my answers. Please see my questions on #1. If I have made any mistakes, please provide your working notes to show how you arrived at your answer. Thanks in advance!

#2 Prepare the journal entry using the spreadsheet to record pension expense in 2017 Date Pension expense Projected Benefit Obligation Tor record Service Cost Pension Expense Projected Benefit Obligation To record Interest Cost Plan Assets Pension Expense Gain on return on assets To record gain on Actual Return Pension Expense Prior Service Cost OCi To provide amortization of PSO Plan Assets 90,000 90,000 Date 56,520 56,250 Date 57,000 48,000 9,000 Date 8,333 8,333 Date 99,000 Cash To record Contribution to Assets Projected Benefit Obligation Plan Assets To record Benefits 99,000 Date 85,000 85,000

#3. Indicate the reporting of 2017 pension amounts in the Income Statement and Balance Sheet using Spreadsheet on #l. SEE #1 Income Statement: Pension Expense: $106,583 (Debit) Balance Sheet: Net Pension Liability: $(211,250) (Credit) #4 what is the amount of deferred pension gain or loss that the company will carry forward to 2018? (put on spreadsheet on #1. SEE #1). Accumulated OCI (PSC): $91,667 (debit) Accumulated OCI Gain: $(18,000) (Credit) Deferred Pension Gain/Loss carried forward to 2018: $91,667 - $18,000 $73,667 (Debit)

#5. Compute the same item as in #1, assuming the expected rate of return is 14% and the Accumulated OCI (gain/loss) is a debit balance at January 1, 2017 Pension Asset/ Liability PSC oCI Pension Cash? РВО Plan Assets Net Deferred Pension Gain/Loss Carry Forward Income Statement Reported Amount Balance Sheet Reported Amount Expense Loss OCI Balance Jan 1, 2017 Service Cost90,000 D Interest Cost 56.250 D Actual Return (57,000)C Expected Return Amortization 8,333 Of PSC Contributions Benefit:s Liability Increase Journal Entry For 2017 Acc. OCI Dec. 31, 2016 Balance Dec 31, 2017 (145,000) C(625,000) C 480,000 D (90,000) |C (56,250 C 57,000 D (10,200) |c 10,200 D (8,333)C (99,000) C 99,000 D 85,000 D (85,000) C (76,000) C 76,000 D (8,333) C 86,200 D 100,000 D 85,000 D D (99,000) C(66,250) C C 762,250) C551,000 D 91,667 171,200 262,667 Expected Return: $480,000 plan assets x 14% expected returns on plan assets : $67,200 Actual Return- Expected Return: $57,000 $67,200 $(10,200) Loss Income Statement: Pension Expense: $87,383 (Debit) Balance Sheet: Net Pension Liability: $(211,250) (Credit) Accumulated OCI (PSC): $91,667 (Debit) Accumulated OCI Gain: $171,200 (Debit) Deferred Pension Gain/Loss carried forward to 2018: $91,667$171,200 $262,867 (Debit)

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer

Pension Work Sheet Negative sign indicates Credits Positive Sign Indicates Debits 2017 General Journal Entrie8 Memo Record Pension Expense OCi-Prior Service Cost oCI Gain /Loss Pension AssetLiability Benefit Obligation Items Plan assets Balance, Jan. 1, 2017 145,000) Cr Cr. 90,0001 Cr 66,2501 Cr 480,000 Dr 90,000 Dr 56,250 Dr Interest cost (settlement rate PB。x2%) Actual Return Cr. 9,000 Dr. 8,333 Dr 1.875 Cr 57.000 Dr d Loss Ngain (9,000)Cr Past service cost Amortization of net gain or loss-AOC (8,333) Cr 1.875 Dr 99,000) C 99,000 Dr (86,000) Cr Benefits Decreaselincrease in PBO-4aetuarial loss) Journal entry for 2017 Accumulated OCI, 1 Jan 17 Balance Dec, 2017 86,000 Dr (76,000 C 76,000 Dr 104,708 D 6 66,250) c 000) Cr 333) Cr 100,000 Dr 91,667 Dr 68.875 Dr (85,000) Cr (16,126r.(211,260) Cr (762,2601 Cr 661,000 Dr 2017 1, Journal entry (or entries) to record all pension effects for 2017 Check (211,2601 Check Account title & explanation Deblt credit Pension expense Other comprehensive income( Pension Asset/Liability 104.708 68,875 66,260 99,000 8,333 Other comprehensive income(PS Projected Benefit Obligation Year Plan assets | Corridor @10% | Cummulative Minimum Years Gain or loss of gain or Loss 2017 625,000 480,000 62,500 85,000 1,875 Gain 1 Using the information above please Indicate the reporting of the 201 on amounts in the income statement and balance sheet. Income Statement Pension expense 104,708Dr Balance Sheet Net Pension Liabili Cr 2 What is the amount of deferred pension gain or loss that the company will carry forward to 2018? Accumulated OCI (PSC Accumulated OCI Gain 91,667 Dr Balance (16,125) Cr Balance3) Compute the same items as in (#1), assuming that the expected rate of return is 14 Pension Work Sheet Negative sign indicates Credits and the Accumulated OCI (Gain/Loss) is a Debit balance at January 1, 201 2017 General Journal Entrie9 Memo Record Positive Sign Indicates Debits I-Prior Annual Penaion Ex OCI Service Cost OCI Gain Loss Pension AssetLiability Projected Benefit Obli Items Cash Plan assets Balance, Jan. 1,2017 Service cost In (145,000) Cr 625 (90,0001 Cr (66,2601 Cr Cr 480,000 Dr terest cost (settlement rate PBo x 9 Actual Return Unexpected Loss Ngain Past service cost Amortization of net gain or loss-AOCI 90,000 Dr 66,260 Dr (57,000 Cr 10.200 Cr 8,333 Dr 1,876 Dr %) 57,000 Dr 10,200 Cr (8,333) Cr (1,875) Cr 99.000 Dr (85,000)|C Benefits 25.000| Dr. (76,000 Cr | Decreaselincrease in PBo-Jactuarial lossl Journal e Accumulated ÖCI, 1 Jan 17 Balance Dec. 2017 76,000 Dr 84.325 Dr 000) Cr. 8,333) Cr 100,000Dr 91,667 Dr for 201T 89.258 Dr | (662501 cr 85,000 Dr 169,325 Dr (211,260)Cr (762.2501 Cr 661,000 Dr 2017 1, Jounal entry (or entries) to record all pension effects for 2017 Check (211,2 Check Account title & explanation Debit credit Penslon expense 89.258 84.325 Other comprehensive income (G/L) Pension AssetJLiabil Cash Other comprehensive income(PSc) 66,260 99,000 8,333 Projected Benefit Obligation Year | Curmmulative Unrecognized Plan assets Corridor 10% Minimum amortization Years Gain or loss of gain or Loss 2017 625,000 480,000 62,500 85,000 1,875 Loss 12

0 0
Add a comment
Know the answer?
Add Answer to:
This question has been posted before with multiple answers provided. Please check my answers. Please see...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the...

    Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 625,000 Accumulated OCI (PSC) 100,000 Dr. Accumulated OCI (Gain/Loss) 85,000 Cr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary: Service cost for 2017 $90,000 Settlement rate 9% Actual return on plan assets in 2017 57,000 Expected return on plan assets...

  • Pension Complete the following. Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On...

    Pension Complete the following. Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 625,000 Accumulated OCI (PSC) 100,000 Dr. Accumulated OCI (Gain/Loss) 85,000 Cr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary: Service cost for 2017 $90,000 Settlement rate 9% Actual return on plan assets in 2017 57,000 Expected...

  • Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, t...

    Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 625,000 Accumulated OCI (PSC) 100,000 Dr. Accumulated OCI (Gain/Loss) 85,000 Cr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary: Service cost for 2017 $90,000 Settlement rate 9% Actual return on plan assets in 2017 57,000 Expected return on plan assets...

  • Exercise 20-10 Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1,...

    Exercise 20-10 Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $480,000 600,000 120,00D 100,000 Dr As a result of the operation of the plan during 2017, the following additional data are provided by the actuary. Service cost Settlement rate, 9% Actual return on plan assets Amortization of prior service cost Expected return on plan assets Unexpected...

  • On January 1, 2017, Sarasota Company has the following defined benefit pension plan balances. Projected benefit obligat...

    On January 1, 2017, Sarasota Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4.434,000 4,230,000 2018, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows The interest (settlement) rate applicable to the plan is 10%. On January 2017 2018 $150,000 cost amortization 90.000 Contributions (funding) to the plan 242,000 285,000 Benefits paid 203.000 281,000 Actual...

  • Problem 20-1 On January 1, 2017, Kingbird Company has the following defined benefit pension plan balances. Projected be...

    Problem 20-1 On January 1, 2017, Kingbird Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,508,000 4,250,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $493,000 are created. Other data related to the pension plan are as follows. 2017 $148,000 Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid...

  • Can I get a step by step walk on how to work this problem out using the provided worksheet.follow...

    Can I get a step by step walk on how to work this problem out using the provided worksheet.following information relates to the current-year activity of the defined benefit pension plan of Kim Company, whose stock is publicly traded: Service cost $240,000 Expected return on plan assets 60,000 Interest cost on pension benefit obligation 80,000 Amortization of actuarial loss 20,000 Amortization of prior service cost 10,000 Kim’s pension cost for the current year is A. $240,000 B. $260,000 C. $270,000...

  • Exercise 20-10 (Part Level Submission) Novak Corp. sponsors a defined benefit pension plan for its employees....

    Exercise 20-10 (Part Level Submission) Novak Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $469,800 607,000 137,200 97,100 Dr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary. Service cost $91,100 Settlement rate, 8% Actual return on plan assets Amortization of prior service cost Expected return...

  • Can I get a step by step using the worksheet attached. Schiff Co. sponsors a defined benefit pens...

    Can I get a step by step using the worksheet attached. Schiff Co. sponsors a defined benefit pension plan. For the current year, the expected return on plan assets was $100,000. The actual return was $150,000. The company’s actuary estimates an increase of $600,000 in the projected benefit obligation. The amount of the projected benefit obligation determined at year end reflected an increase of only $400,000. If no net gain (loss) was carried in accumulated OCI at the beginning of...

  • Problem 20-11 The following data relate to the operation of Culver Co.'s pension plan in 2018....

    Problem 20-11 The following data relate to the operation of Culver Co.'s pension plan in 2018. Service cost Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Average service life of all employees $64,900 35,200 30,800 56,100 29,700 25 years The pension worksheet for 2017 is presented below. CULVER COMPANY Worksheet-2017 General Journal Entries Annual Pension Expense Cash OCI-Prior OCI - Pension Service Cost Gain/Loss Asset/Liability $132,000 Cr. Memo Record Projected Benefit Obligation Plan...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT