Question

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 Assets $357,500 Cr. $225,500 Dr. 22,000 Cr. 28,600 Cr. 19,800 Dr. Items Balance, Jan. 1, 2017 Service cost Interest cost Actual return Unexpected loss Amortization of PSC Contributions Benefits Increase in PBO Journal entry for 2017 Accumulated OCI, Dec. 31, 2016 Balance, Dec. 31, 2017 $22,000 Dr. 28,600 Dr. 19,800 Cr. 2,750 Cr. 38,500 Dr. $2,750 Dr. $38,500 Cr. $45,100 Cr. 45,100 Dr 16,500 Cr. 16,500 Dr. 47,850 Cr. $66,550 Dr. $45,100 Cr. 33,550 Cr. 47,850 Dr. 38,500 Cr. 50,600 Dr. 88,000 Dr. $49,500 Dr. $50,600 Dr. $165,550 Cr. $439,450 Cr. $273,900 Dr. For 2018, Culver will use the same assumptions as 2017 for the expected rate of returns on plan assets. The settlement rate for 2018 is 10%.

Answer 1

CULVER COMPANY Pension Worksheet - 2018 General Entries Cash OCI - Prior Service OCI -Gain/Loss Annual Pension Pension 165,550 Cr. Memo Record Project Benefit Plan Assets 439,450 Cr. 273,900 Dr. 64,900 Cr. 43,945 Cr. 35,200 Dr. Items Balance, Jan. 1, 2018 Service Cost Interest Cost Actual Return Unexpected gain Amortization of PSC Amortization of loss Contributions Benefits Journal Entry for 2018 Accumulated OCI Dec 31, 2017 Balance Dec 31, 2018 64,900 Dr. 43,945 Dr. 35,200 Cr. 7,810 Dr. 30,800 Dr. 266 Dr. 7,810 Cr. 30,800 Cr. 266 Cr. 56,100 Cr. 56,100 Dr. 29,700 Cr. 29,700 Dr. 112,521 Dr. 56,100 Cr. 17,545 Cr. 30,800 Cr. 49,500 Dr. 18,700 Dr. 8,076 Cr. 50,600 Dr. 42,524 Dr. 183,095 Cr. 518,595 Cr. 335,500 Dr. Amoritzation of the loss 266

Debit Credit 112,521 | Date Account Titles and Explanation Dec.31 ,2018 Pension Expense Pension Assets/Liabilities Cash Other comprehensive income - PSC Other comprehensive Income -G/L 17,545 56,100 30,800 8,076 Culver Co. Income Statement (Partial) For the Year Ended December 31,2018 Expenses Pension Expense 112,521 $ XXXX Culver Co. Comprehensive Income Statement For the Year Ended December 31, 2018 Net Income Other Comprehensive Income(Loss) Asset gain(loss) 7,810 Amortization of Loss Prior service cost amortization 30,800 Comprehensive Income 38,876 $ XXXX Culver Co. Partial Balance Sheet December 31,2018 Liabilities Pension liability Stockholders' Equity | Accumulated other Comprehensive loss (PSC) Accumulated other Comprehensive loss (G/L) $ 183,095 $ 18,700 42,524