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Van Persie Corp sponsors a defined-benefit pension plan for its employees. The following balances related to the plan exist on December 31, 2016 Plan assets (market value) Projected benefit obligation Pension asset liability $450,000 600,000 150,000 Cr Van Persie amends the pension plan, effective 1/1/2017, and the actuary inforns Van Persie that the Prior Service Cost associated with the amendment equals $90.000. As a result of the operation of the plan during 2017, the actuary provided the following additional data on December 31, 2017 Service cost for 2017 Actual return on plan assets in 2017 Amortization of prior service cost Contributions in 2017 Benefits paid retirees in 2017 Settlement rate Expected return rate $ 75.000 5,000 20,000 115,000 70,000 7% 856 Instructions (a) Compute pension expense for Van Persie Corp. for the year 2017 by preparing the attached pension worksheet (b) Prepare the jounal entry for pension expense. for the year 2017 by preparing the attached pension worksheet
Gener al Journal Entri es Memo Record Other Comprehensive Income Cash Pior Service Gains/Losses Pension PBO Pl an Ass ets Pension Expense Items Cost Asset/Liability
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Van Persie Corp Pension worksheet-2017 General Journal Entries Memo Record OCI Prior OCI PensionProjected pension Items Cash Service Gain/Lo Asset/Liabi Benefit Plan Assets Expense cost lity Obligation Balance, Dec.31,2016 Service Cost Interest cost (WN 1) Actual return Amortisation of PSC Unexpected gain Contribution Benefits Journal entry for 2017 Accumulated OCI, Dec. 31, 2016 Balance, Dec.31, 2017 S (1,50,000) S (6,00,000) $ 4,50,000 S (75,000) S (42,000) 75,000 42,000 S(45,000) 20,000 9,000 S45,000 S (20,000) $(9,000) S (1,15,000) $ 1,15,000 $ 70,000 $ (70,000) S 1,01.000 (115,000) S (20,000) S(9,000) S43,000 S 90,000 S 70,000 S(9,000) S(1,07,000) (6,47,000) $ 5,40,000 Working note (WN) 1) Interest Cost 2)Unexpected gain 7% * $600,000-$42,000 (896 * $450,000)-$45,000-$9,000 Journal Entry: Date Dec. 31, 2017 Pension Expense Debit S1,01,000 Account Titles and Explanation Credit Pension Assets/Liability 43,000 Cash other Comprehensive Income - Gain/Loss other Comprehensive Income/Loss - PSC S 1,15,000 9,000 S 20,000

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