Pharoah Corp. sponsors a defined benefit pension plan for itsemployees. On January 1, 2017, the following balances relate tothis plan.
Plan assets $498,300
Projected benefit obligation 614,700
Pension asset/liability 116,400
Accumulated OCI (PSC) 96,900 Dr.
As a result of the operation of the plan during 2017, thefollowing additional data are provided by the actuary.
Service cost $92,500
Settlement rate, 9%
Actual return on plan assets 54,200
Amortization of prior service cost 18,100
Expected return on plan assets 51,200
Unexpected loss from change in projected benefit obligation,
due to change in actuarial predictions 74,200
Contributions 97,200
Benefits paid retirees 82,600
Using the data above, compute pension expense for Pharoah Corp.for the year 2017 by preparing a pension worksheet. (Enter allamounts as positive.)
PHAROAH CORP.
Pension Worksheet
General Journal Entries
Memo Record
Items
Annual Pension
Expense
Cash
OCIâPrior
Service Cost
OCIâ Gain/
Loss
Pension Asset/
Liability
Projected Benefit
Obligation
Plan
Assets
Balance, Jan. 1, 2017
$
$
$
$
$
$
$
Service cost
Interest cost
Actual return
Unexpected gain
Amortization of PSC
Liability increase
Contributions
Benefits
Journal entry for 2017
$
$
Accumulated OCI, Dec. 31, 2016
Balance, December 31, 2017
$
$
$
$
$
Prepare the journal entry for pension expense for 2017. (Creditaccount titles are automatically indented when amount is entered.Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
Pharoah Corp. sponsors a defined benefit pension plan for itsemployees. On January 1, 2017, the following balances relate tothis plan.
Plan assets $498,300
Projected benefit obligation 614,700
Pension asset/liability 116,400
Accumulated OCI (PSC) 96,900 Dr.
As a result of the operation of the plan during 2017, thefollowing additional data are provided by the actuary.
Service cost $92,500
Settlement rate, 9%
Actual return on plan assets 54,200
Amortization of prior service cost 18,100
Expected return on plan assets 51,200
Unexpected loss from change in projected benefit obligation,
due to change in actuarial predictions 74,200
Contributions 97,200
Benefits paid retirees 82,600
Using the data above, compute pension expense for Pharoah Corp.for the year 2017 by preparing a pension worksheet. (Enter allamounts as positive.)
PHAROAH CORP.
Pension Worksheet
General Journal Entries
Memo Record
Items
Annual Pension
Expense
Cash
OCIâPrior
Service Cost
OCIâ Gain/
Loss
Pension Asset/
Liability
Projected Benefit
Obligation
Plan
Assets
Balance, Jan. 1, 2017
$
$
$
$
$
$
$
Service cost
Interest cost
Actual return
Unexpected gain
Amortization of PSC
Liability increase
Contributions
Benefits
Journal entry for 2017
$
$
Accumulated OCI, Dec. 31, 2016
Balance, December 31, 2017
$
$
$
$
$
Prepare the journal entry for pension expense for 2017. (Creditaccount titles are automatically indented when amount is entered.Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
Related questions
he following defined pension data of Rydell Corp. apply to theyear 2014.
| Projected benefit obligation, 1/1/14 (before amendment) | $564,000 | ||
| Plan assets, 1/1/14 | 548,900 | ||
| Pension liability | 15,100 | ||
| On January 1, 2014, Rydell Corp., through plan amendment, grants prior service benefits having a presentvalue of | 128,900 | ||
| Settlement rate | 10 | % | |
| Service cost | 60,000 | ||
| Contributions (funding) | 74,200 | ||
| Actual (expected) return on plan assets | 59,900 | ||
| Benefits paid to retirees | 47,900 | ||
| Prior service cost amortization for 2014 | 20,200 |
For 2014, prepare a pension worksheet for Rydell Corp. that showsthe journal entry for pension expense and the year-end balances inthe related pension accounts.
