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 |
10% |
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions |
76,000 |
Contributions in 2017 |
99,000 |
Benefits paid retirees in 2017 |
85,000 |
Avg. remaining service life (all employees) |
12 years |
Pension Expense | Pension Asset | Pension Liability | Projected Benefit | Plan Assets | Prior Service Cost | Net Gains or (Loss) | Deferred Pension gain | Income statement | Balance Sheet | |
Obligations | OCI | OCI | or Loss Carried forwrd | Reported Amount | Reported Amount | |||||
Balance, Jan. 1, 2017 | ||||||||||
Service cost | ||||||||||
Interest cost | ||||||||||
Actual Return | ||||||||||
Expected Return | ||||||||||
Amortization of PSC | ||||||||||
Contributions | ||||||||||
Benefits | ||||||||||
Liability increase | ||||||||||
Journal entry for 2017 | ||||||||||
Accumulated OCI, Dec. 31, 2016 | ||||||||||
Balance, Dec. 31, 2017 | ||||||||||
2. Prepare the journal entry to record pension expense in 2017.
3. Indicate the reporting of the 2017 pension amounts in the income statement and balance sheet using the spreadsheet below
4. What is the amount of deferred pension gain or loss that the company will carry forward to 2018?
5. Compute the same items as in (#1), assuming that the expected rate of return is 14% and the Accumulated OCI (Gain/Loss) is a Debit balance at January 1, 2017.
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 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...
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...
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...
Sweet Corp. sponsors a defined benet pension plan for its employees. On January 1, 2020, the following balances related to this plan Plan assets (market-related value Prajected benefit obligation Pension asset/liability Prior service cost Nct gain or loss (dcbit) $522,000 738,000 216,000 Cr. 83,000 99,000 As a result of the aperation of the plan during 2020, the actuary provided the following additional data for 2020 $97,000 Service cost Settlement rate, 9%, expected retumrate, 10% Actual return on plan assets Amortization...
Waterway Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2017 and 2018. Prepare a pension worksheet presenting both years 2017 and 2018. (Round answers to 0 decimal places, e.g. 5,125. Enter all amounts as positive.) Calculate the amortization of the loss (2018) using the corridor approach. Amortization of the loss $ _______ Prepare the journal entries (from the worksheet) to reflect all pension plan transactions...
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...
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Exercise 20-10 Ivanhoe Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $469,100 Projected benefit obligation 575,200 Pension asset/liability 106,100 Accumulated OCI (PSC) 97,900 Dr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary. Service cost $90,500 Settlement rate, 8% Actual return on plan assets 56,400 Amortization of prior service cost 18,800 Expected return on...
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