Question
In: Accounting
Ayayai Company provides the following information about its defined benefit pension plan for the year 2017....
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Expert Solution
| Ayayai Company | ||||||||||||
| Pension Worksheet- 2017 | ||||||||||||
| General Journal Entries | Memo Record | |||||||||||
| Items | Annual Pension Expense | Cash | OCI-Prior Service Cost | Pension Asset/ Liability | Projected Benefit Obligation | Plan Assets | ||||||
| Balance, Jan 1, 2017 | $ 152,100 | Dr. | $ 54,100 | Cr. | $ 686,700 | Cr. | $ 632,600 | Dr. | ||||
| Service cost | $ 91,200 | Dr. | $ 91,200 | Cr. | ||||||||
| Interest cost (686,700*9%) | $ 61,803 | Dr. | $ 61,803 | Cr. | ||||||||
| Actual return | $ 62,800 | Cr. | $ 62,800 | Dr. | ||||||||
| Amortization of PSC | $ 9,800 | Dr. | $ 9,800 | Cr. | ||||||||
| Contributions | $ 104,700 | Cr. | $ 104,700 | Dr. | ||||||||
| Benefits | $ 40,500 | Dr. | $ 40,500 | Cr. | ||||||||
| Journal entry for 2014 | $ 100,003 | Dr. | $ 104,700 | Cr. | $ 9,800 | Cr. | $ 14,497 | Dr. | ||||
| Accumulated OCI, Dec.31, 2017 | $ 152,100 | Dr. | ||||||||||
| Balance, Dec 31, 2018 | $ 142,300 | Dr. | $ 39,603 | Cr. | $ 799,203 | Cr. | $ 759,600 | Dr. | ||||
| Journal entry | ||||||||||||
| Account Titles and Explanation | Debit | Credit | ||||||||||
| Pension Expense | $ 100,003 | |||||||||||
| Pension Asset/ Liability | $ 14,497 | |||||||||||
| OCI-PSC | $ 9,800 | |||||||||||
| Cash | $ 104,700 | |||||||||||
| (To record pension expense) | ||||||||||||
Feel free to ask any clarification, if required. Please provide feedback by thumbs up, if satisfied. It will be highly appreciated. Thank you.
ekkarill92 answered 1 month agoRelated Solutions
Ayayai Company provides the following information about its defined benefit pension plan for the year 2017....
Ayayai Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$91,200
Contribution to the plan
104,700
Prior service cost amortization
9,800
Actual and expected return on plan assets
62,800
Benefits paid
40,500
Plan assets at January 1, 2017
632,600
Projected benefit obligation at January 1, 2017
686,700
Accumulated OCI (PSC) at January 1, 2017
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Interest/discount (settlement) rate
9
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Contribution to the plan
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Actual and expected return on plan assets
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Projected benefit obligation at January 1, 2020
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Projected benefit obligation at January 1, 2020
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Service cost
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Contribution to the plan
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Prior service cost amortization
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Actual and expected return on plan assets
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Benefits paid
40,100
Plan assets at January 1, 2020
647,500
Projected benefit obligation at January 1, 2020
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Accumulated OCI (PSC) at January 1, 2020
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Interest/discount (settlement) rate
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