Question

Exercise 20-7 The following defined pension data of Crane Corp. apply to the year 2017. Projected benefit obligation, 1/1/17 (before amendment) Plan assets, 1/1/17 Pension liability On January 1, 2017, Crane Corp., through plan amendment, grants prior service benefits having a present value of Settlement rate $504,000 489,500 14,500 Service cost Contributions (funding) Actual (expected) return on plan assets Benefits paid to retirees Prior service cost amortization for 2017 109,000 10 % 63,600 61,100 49,200 39,900 18,400 For 2017, prepare a pension worksheet for Crane Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. (Enter all amounts as positive.)

Answer 1

Pension Work sheet 2017

General Journal Entry's Memo Record

Items	Annual Pension Expanse	Cash	OCI Prior Service Cost	Pension Asset Liability	Project Benefit Obligation	Plan Asset
Dec.31.2017				(14,500)	(504,000)	489,500
PSC			109,000		(109,000)
Bal.Jan 1 .2017					(613,000)	489,500
Service Cost	63,600				(63,600)
Interest Cost	61,300
Asset Return	(49,200)					49,200
Amot. PSC	18,400		(18,400)
Contribution		(61,100)				61,100
Benefits Paid					39,900	(39,900)
Journal Entry	94,100	(61,100)	90,600	(123,600)
AOCI Dec.31 2016
Balance Dec.31 2017			90,600	(138,100)	(636,700)	559,900

Journal Entry

Date	Account Title and Explanation	Debit	Credit
Dec.31.2017	Pension Expenses	94,100
	Other Comprehensive Income (PSC)	90,600
	Pension Asset / Liability		123,600
	Cash		61,100