ZuoTi.Pro
Question

Problem 20-11 The following data relate to the operation of Vaughn Co.s pension plan in 2018. Service cost Actual return onThe pension worksheet for 2017 is presented below VAUGHN COMPANY Worksheet-2017 General Journal Entries emo Record ProjectedVAUGHN COMPANY Pension Worksheet-2018 Annual Pension Expense OCI-Prior Service Cost OCI- Gain/ Loss Pension Asset/ LiabilityCalculate the amortization of the loss, if any, in 2018 using the corridor approach. (Round answers to 0 decimal places, e.g.Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31. when amoIndicate the pension amounts reported in the financial statements. (Round answe Vaughn Co. Income Statement (Partial) Vaughn

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Vaughn Company
Pension Worksheet - 2018
General Journal Entries Memo Record
Items Annual Pension Expense Cash OCI - PSC OCI - Gain/Loss Pension Asset/Liability PBO Plan Assets
Balance, Jan. 1, 2018                    455,430 Cr.
Service Cost                67,260 Dr.                      67,260 Cr.
Interest Cost                45,543 Dr.                      45,543 Cr.
Actual Return                36,480 Cr.              36,480 Dr.
Unexpected Gain                  8,094 Dr.                8,094 Cr.
Amortization of PSC                31,920 Dr.                31,920 Cr.
Amortization of Loss                275.88 Dr.              275.88 Cr.
Contributions                 58,140 Cr.              58,140 Dr.
Benefits                      30,780 Dr.              30,780 Cr.
Journal entry for 2018              116,613 Dr.                 58,140 Cr.                31,920 Cr.                8,370 Cr.               18,183 Cr.
Accumulated OCI, Dec. 31, 2017                51,300 Dr.
Balance, Dec. 31, 2018                19,380 Cr.                    537,453 Dr.              63,840 Cr.

Amortization Loss = $ 275.88 = [52,440 - (455430 * 10%)] / 25

                                                                                                Debit              Credit

Dec. 31          Pension Expense                                         116,613

                        OCI – PSC                                                                              31,920

                        OCI – Gain/Loss                                                                  8,370

                        Pension Asset/Liability                                                      18,183

                        Cash                                                                                       58,140

0 0
Add a comment
Know the answer?
Add Answer to:
Problem 20-11 The following data relate to the operation of Vaughn Co.'s pension plan in 2018....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Problem 20-11 The following data relate to the operation of Culver Co.'s pension plan in 2018....

    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...

  • Waterway Company sponsors a defined benefit pension plan for its employees. The following data re...

    Waterway Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2017 and 2018. Prepare a pension worksheet presenting both years 2017 and 2018. (Round answers to 0 decimal places, e.g. 5,125. Enter all amounts as positive.) Calculate the amortization of the loss (2018) using the corridor approach. Amortization of the loss $ _______ Prepare the journal entries (from the worksheet) to reflect all pension plan transactions...

  • "Problem 20-1 On January 1, 2017, Pina Company has the following defined benefit pension plan balances...

    "Problem 20-1 On January 1, 2017, Pina Company has the following defined benefit pension plan balances Projected benefit obligation Fair value of plan assets $4,441,000 4,230,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $495,000 are created. Other data related to the pension plan are as follows. 2017 Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid Actual...

  • Problem 20-1 On January 1, 2017, Kingbird Company has the following defined benefit pension plan balances. Projected be...

    Problem 20-1 On January 1, 2017, Kingbird Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,508,000 4,250,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $493,000 are created. Other data related to the pension plan are as follows. 2017 $148,000 Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid...

  • On January 1, 2017, Sarasota Company has the following defined benefit pension plan balances. Projected benefit obligat...

    On January 1, 2017, Sarasota Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4.434,000 4,230,000 2018, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows The interest (settlement) rate applicable to the plan is 10%. On January 2017 2018 $150,000 cost amortization 90.000 Contributions (funding) to the plan 242,000 285,000 Benefits paid 203.000 281,000 Actual...

  • Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the...

    Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 625,000 Accumulated OCI (PSC) 100,000 Dr. Accumulated OCI (Gain/Loss) 85,000 Cr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary: Service cost for 2017 $90,000 Settlement rate 9% Actual return on plan assets in 2017 57,000 Expected return on plan assets...

  • Kingbird Company provides the following information about its defined benefit pension plan for the year 2017....

    Kingbird Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $90,600 Contribution to the plan 103,900 Prior service cost amortization 10,100 Actual and expected return on plan assets 63,100 Benefits paid 39,600 Plan assets at January 1, 2017 644,100 Projected benefit obligation at January 1, 2017 710,600 Accumulated OCI (PSC) at January 1, 2017 149,400 Interest/discount (settlement) rate 9 % Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31,...

  • Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, t...

    Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 625,000 Accumulated OCI (PSC) 100,000 Dr. Accumulated OCI (Gain/Loss) 85,000 Cr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary: Service cost for 2017 $90,000 Settlement rate 9% Actual return on plan assets in 2017 57,000 Expected return on plan assets...

  • Exercise 20-7 The following defined pension data of Crane Corp. apply to the year 2017. Projected...

    Exercise 20-7 The following defined pension data of Crane Corp. apply to the year 2017. Projected benefit obligation, 1/1/17 (before amendment) Plan assets, 1/1/17 Pension liability On January 1, 2017, Crane Corp., through plan amendment, grants prior service benefits having a present value of Settlement rate $504,000 489,500 14,500 Service cost Contributions (funding) Actual (expected) return on plan assets Benefits paid to retirees Prior service cost amortization for 2017 109,000 10 % 63,600 61,100 49,200 39,900 18,400 For 2017, prepare...

  • Exercise 20-10 (Part Level Submission) Novak Corp. sponsors a defined benefit pension plan for its employees....

    Exercise 20-10 (Part Level Submission) Novak Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $469,800 607,000 137,200 97,100 Dr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary. Service cost $91,100 Settlement rate, 8% Actual return on plan assets Amortization of prior service cost Expected return...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT