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SuperSports provides you the following pension data for the year 2016. Item    Service Cost, 2016...

SuperSports provides you the following pension data for the year 2016.

Item   
Service Cost, 2016 $248,000
Projected Benefit Obligation, January 2016 $340,000
Plan assets (fair value), Januray 1, 2016 $360,000
Prior Service Cost - AOCI (2016 amoritization, $25,000) $250,000
Net Loss - AOCI (2016 amoritization, $10,000) $110,000
Actual Return on Plan Assets $45,000
Interest rate and expected return on plan assets 10%
Contributions made to plan assets during 2016
$175,000

SuperSports requests you to:

Compute pension expense for the year 2016
Record 2016 journal entry for pension expense

business   accounting   
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Answer #1
Supersport
S Pension Worksheet Memo record
Annual Pension Expense Cash OCI - Year Service Cost OCI _ Gain/Loss Pension Asset/ Liability Projected benefit obligation Plan assets
Balance Jan 1 , 2016 340000Cr 360000Dr
Service Cost 248000Dr 248000Cr
interest cost 34000 Dr 34000Cr
Actual return 45000 Cr 45000 Dr
Unexpected gains 36000 Dr 36000 Cr 36000 Cr
Amortization of PSC 25000 Dr 25000 Cr 25000Cr
Amortization of loss 10000 Dr 10000 Cr
Contribution 175000 Cr
Benefits
Journal Entries for Dec ,2017 398000 Dr 175000 Cr 25000Cr 36000Cr 162000Cr 622000Cr 344000Dr
Accummulated 250000 Dr
Balance 2017 225000Cr
* $34000 = $340000*10%
** $ 36000 = $360000*10%
Journal Entry
Debit Credit
Annual Pension Expenses 398000
   Pension assets/ liabilities 162000
   Cash 175000
   OCI service Cost 25000
   OCI Gain/loss 36000
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