Pension Worksheet- 2017 | |||||||
Memo Record | General Journal Entries | ||||||
PROJECTED BENEFIT OBLIGATION | PLAN ASSET | Prior Service Cost-AOCI | Net Loss (Gain)-AOCI | Annual Pension Expense | Cash | Pension Asset/ Liability | |
Balance, Jan 1, 2017 | $ (350,000) | $ 250,000 | $ 30,000 | $ 43,750 | $ (100,000) | ||
Service cost | $ (40,000) | $ 40,000 | $ (40,000) | ||||
Interest cost,3% (350000*3%) | $ (10,500) | $ 10,500 | $ (10,500) | ||||
Expected return on assets (250000*3%) | $ 7,500 | $ (7,500) | $ 7,500 | ||||
Adjust for: | $ - | ||||||
Gain on assets (250000*4%=10000-7500) | $ 2,500 | $ (2,500) | $ 2,500 | ||||
Loss on PBO for assumption changes | $ (3,500) | $ 3,500 | $ (3,500) | ||||
Amortization of Prior Service Cost (40000/4) | $ (10,000) | $ 10,000 | $ - | ||||
Amortization of Net Loss | $ (2,188) | $ 2,188 | $ - | ||||
Contributions | $ 44,000 | $ (44,000) | $ 44,000 | ||||
Retiree Benefits | $ 45,000 | $ (45,000) | $ - | ||||
Balance, Dec 31, 2017 | $ (359,000) | $ 259,000 | $ 20,000 | $ 42,563 | $ 55,188 | $ (44,000) | $ (100,000) |
Computation of unexpected loss/(gain) on assets for the year 2017:- | |||
Expected return on the plan assets (250000*3%) | $ 7,500 | ||
Less: Actual return on the plan assets (250000*4%) | $ 10,000 | ||
Unexpected loss/(gain) on plan assets for 2017 | $ (2,500) | ||
Computation of amount of loss to be amortized from OCI-loss Account in current year:- | |||
a. Net loss-AOCI beginning | $ 43,750 | ||
Projected Benefit Obligation, beginning | $ 350,000 | ||
Plan Assets, beginning | $ 250,000 | ||
Higher value | $ 350,000 | ||
b. Corridor =10% of $350000 | $ 35,000 | ||
c. Excess at the beginning of the year (a-b) | $8,750 | ||
d. Average remaining service period | 4 years | ||
e. loss amortized to current year pension expense (c/d) | $2,188 | ||
Computation of Pension Expense for the Current year:- | |||
Service cost | $ 40,000 | ||
Interest cost | $ 10,500 | ||
Expected return on the plan assets | $ (7,500) | ||
Amortization of past service cost | $ 10,000 | ||
Amortization of net loss | $ 2,188 | ||
Pension Expense | $ 55,188 | ||
Journal entry | |||
Account Titles and Explanation | Debit | Credit | |
Pension Expense | $ 55,188 | ||
Cash | $ 44,000 | ||
OCI-PSC | $ 10,000 | ||
OCI - loss | $ 1,188 | ||
(To record pension expense) |
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Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan...
Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH $ 120,000 $ 350,000 $ 40,000 Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year 3,500 (45,000) $ Projected benefit obligation at the end of 2017 $ 250,000 Plan assets at the beginning of the year Actual return...
Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH 3% 3% 4% 120,000 Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year $ $ 350,000 40,000 $ $ 3,500 (45,000) Projected benefit obligation at the end of 2017 $ 250,000 Plan assets at the beginning of the...
3% Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH 3% 120,000 $ $ Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year 350,000 40,000 $ $ 3,500 (45,000) Projected benefit obligation at the end of 2017 $ 250,000 Plan assets at the beginning of the year...
USE THE FOLLOWING INFORMATION FOR # 11-20 Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH 3% 3% 4% 120,000 $ e beginning of 2017 Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year $ $ 350,000 40,000 $ $ 3.500 (45,000) Projected benefit obligation at the...
USE THE FOLLOWING INFORMATION FOR # 11-20 Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH 3% 3% 49% $ 120,000 e beginning of 2017 Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year S $ 350,000 40,000 $ $ 3.500 (45,000) Projected benefit obligation at the...
USE THE FOLLOWING INFORMATION FOR # 11-20 Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH $ 120,000 Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year $ $ 350,000 40.000 S 3,500 (45,000) Projected benefit obligation at the end of 2017 $ 250,000 Plan assets at...
SE THE FOLLOWING INFORMATION FOR #11 - 20 Interest (Cost) Rate Expected rate of return on plan assets Actual rate of retum on plan assets Beginning of year balance in CASH Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year $ 350,000 40,000 00 45.000 Projected benefit obligation at the end of 2017 Plan assets at the beginning of the year...
USE THE FOLLOWING INFORMATION FOR 11-20 Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year Projected benefit obligation at the end of 2017 Plan assets at the beginning of the year Actual return on plan assets Cash contributions...
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