Question

Exercise 20-12 

Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2017.

January 1, 2017 $1,500,000 800,000 1,600,000 December 31, 2017 Projected benefit obligation $1,527,000 Market-related and fair value of plan assets Accumulated benefit obligation 1,130,000 1,720,000 (200,000) Accumulated OCI (G/L)-Net gain 

The service cost component of pension expense for employee services rendered in the current year amounted to $77,000 and the amortization of prior service cost was $120,000. The company's actual funding contributions of the plan in 2017 amounted to $250,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,200,000 on January 1, 2017. Assume no benefits paid in 2017 

Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g.-45 or parenthesis e.g. (45).) 

Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 

Answer 1

Asset osh asset! Pan Soc2 Tolo 3,03,000 Gau los ,20,000 2,00 000 267.000