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Question 10 Sheridan Company provides the following information about its defined benefit pension plan for the...
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Prepare the journal entry recording pension expense. (Credit account 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.)
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| Year 2020 | ||||
| 1 | Pension Expense | $ 99,002.00 | ||
| 2 | Journal entry | |||
| Account title & Explaination | 2020 | |||
| Debit | Credit | |||
| Annual pension expense | 99,002.00 | |||
| OCI-Prior Service Cost | 10,700.00 | |||
| OCI-(Gain/Loss) | - | |||
| Cash | 1,07,000.00 | |||
| Net Pension Asset/liability | 18,698.00 | |||
| (To record pension expense and remeasurement loss recorded) | ||||
| 3 | Plan Asset | 1,07,000 | ||
| Cash | 1,07,000 | |||
| (To record the contribution made) | ||||
| Net Pension Asset/liability | 40,100 | |||
| Cash | 40,100 | |||
| (To record benefit paid) | ||||
| 4 | Net Pension Asset/(liability) | $ (41,602) | ||
| 5 | Projected benefit obligation | $ (8,21,202) | ||
| Plan Asset | $ 7,79,600 | |||
| Plan Surplus/(Deficit) | $ (41,602) | |||
| Pension Worksheet 2020 | ||||||||
| Items | Annual Pension Expense | Cash | OCI-Prior Service Cost | OCI-Gain/(Loss) | Pension Asset/liability | Projected benefit obligation | Plan Asset | |
| Balance, Jan 1,2020 | $ - | $ - | $ 1,47,500 | $ - | $ (60,300) | $ (7,07,800) | $ 6,47,500 | |
| Past Service Cost created | $ - | $ - | $ - | $ - | $ - | $ - | ||
| Service Cost | $ 89,800 | $ - | $ - | $ - | $ (89,800) | $ - | ||
| Interest Cost | $ 63,702 | $ - | $ - | $ - | $ (63,702) | $ - | ||
| Actual return | $ (65,200) | $ - | $ - | $ - | $ - | $ 65,200 | ||
| Unexpected gain/ loss | $ - | $ - | $ - | $ - | $ - | $ - | ||
| Amortisation of PSC | $ 10,700 | $ - | $ (10,700) | $ - | $ - | $ - | ||
| Amortisation of OCI-Gain/loss | $ - | $ - | $ - | $ - | $ - | $ - | ||
| Liability (increases)/decreases | $ - | $ - | $ - | $ - | ||||
| Contributions | $ - | $ (1,07,000) | $ - | $ - | $ - | $ 1,07,000 | ||
| Benefits | $ - | $ - | $ - | $ - | $ 40,100 | $ (40,100) | ||
| $ - | $ - | $ - | $ - | $ - | $ - | |||
| Journal entry for 2020 | $ 99,002 | $ (1,07,000) | $ (10,700) | $ - | $ 18,698 | $ (1,13,402) | $ 1,32,100 | |
| Accumulated OCI dec 31, 2019 | $ - | $ - | $ 1,47,500 | $ - | $ - | $ - | $ - | |
| Balance, December 31, 2020 | $ - | $ - | $ 1,36,800 | $ - | $ (41,602) | $ (8,21,202) | $ 7,79,600 | |
 ekkarill92 answered 1 year agoRelated SolutionsQuestion 10 Sheridan Company provides the following information about its defined benefit pension plan for the...Question 10
Sheridan Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$89,800
Contribution to the plan
107,000
Prior service cost amortization
10,700
Actual and expected return on plan assets
65,200
Benefits paid
40,100
Plan assets at January 1, 2020
647,500
Projected benefit obligation at January 1, 2020
707,800
Accumulated OCI (PSC) at January 1, 2020
147,500
Interest/discount (settlement) rate
9
%
1. Prepare a pension worksheet inserting January 1, 2020,
balances,...
Vaughn Company provides the following information about its defined benefit pension plan for the year 2017....Vaughn Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$88,500
Contribution to the plan
107,100
Prior service cost amortization
10,600
Actual and expected return on plan assets
63,100
Benefits paid
40,800
Plan assets at January 1, 2017
648,000
Projected benefit obligation at January 1, 2017
688,100
Accumulated OCI (PSC) at January 1, 2017
148,600
Interest/discount (settlement) rate
11
%
Prepare a pension worksheet inserting January 1, 2017, balances,
showing December 31,...
Xyz Company provides the following information about its defined benefit pension plan for the year 2020....
Xyz Company provides the following information about its defined
benefit pension plan for the year 2020.
Service cost
$91,600
Contribution to the plan
104,400
Prior service cost amortization
10,800
Actual and expected return on plan assets
64,600
Benefits paid
40,300
Plan assets at January 1, 2020
650,000
Projected benefit obligation at January 1, 2020
692,000
Accumulated OCI (PSC) at January 1, 2020
150,000
Interest/discount (settlement) rate
11
%
Prepare a pension worksheet inserting January 1, 2020,
balances, showing December 31,...
Pina Company provides the following information about its defined benefit pension plan for the year 2020....Pina Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$90,900
Contribution to the plan
103,000
Prior service cost amortization
9,300
Actual and expected return on plan assets
63,200
Benefits paid
39,800
Plan assets at January 1, 2020
648,600
Projected benefit obligation at January 1, 2020
706,600
Accumulated OCI (PSC) at January 1, 2020
148,800
Interest/discount (settlement) rate
10
%
Prepare the journal entry recording pension expense.
(Credit account titles are automatically...
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
152,100
Interest/discount (settlement) rate
9
%
Requirements:
Using Excel prepare a pension worksheet inserting January 1,
2017, balances,...
Exercise 20-3 Novak Company provides the following information about its defined benefit pension plan for the...Exercise 20-3
Novak Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost $90,800
Contribution to the plan 106,900
Prior service cost amortization 9,000
Actual and expected return on plan assets 63,500
Benefits paid 40,100
Plan assets at January 1, 2017 642,500
Projected benefit obligation at January 1, 2017 707,800
Accumulated OCI (PSC) at January 1, 2017 152,900
Interest/discount (settlement) rate 11 %
Prepare a pension worksheet inserting January 1, 2017, balances,
showing...
Blossom Corporation provides the following information about its defined benefit pension plan for the year 2020:...Blossom Corporation provides the following information about its
defined benefit pension plan for the year 2020:
Current service cost
$225,100
Contribution to the plan
262,600
Past service cost, effective December 31, 2020
25,100
Actual return on plan assets
159,000
Benefits paid
101,000
Net defined benefit liability at January 1, 2020
412,000
Plan assets at January 1, 2020
1,590,000
Defined benefit obligation at January 1, 2020
2,002,000
Interest/discount rate on the DBO and plan assets
10%
Blossom follows IRFS.
Pharoah Corporation provides the following information about its defined benefit pension plan for the year 2020:...Pharoah Corporation provides the following information about its
defined benefit pension plan for the year 2020:
Current service cost
$225,600
Contribution to the plan
263,100
Past service cost, effective December 31, 2020
25,600
Actual return on plan assets
160,000
Benefits paid
106,000
Net defined benefit liability at January 1, 2020
400,600
Plan assets at January 1, 2020
1,600,000
Defined benefit obligation at January 1, 2020
2,000,600
Interest/discount rate on the DBO and plan assets
10%
Pharoah follows IFRS.
QUESTIONS:
A)...
Ivanhoe Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about...Ivanhoe Company sponsors a defined benefit pension plan. The
corporation’s actuary provides the following information about the
plan.
January 1, 2017
December 31, 2017
Vested benefit obligation
$1,500
$1,940
Accumulated benefit obligation
1,940
2,780
Projected benefit obligation
2,480
3,350
Plan assets (fair value)
1,670
2,650
Settlement rate and expected rate of return
10%
Pension asset/liability
810
?
Service cost for the year 2017
390
Contributions (funding in 2017)
690
Benefits paid in 2017
200
Prepare the journal entries at December...
Culver Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about...Culver Company sponsors a defined benefit pension plan. The
corporation’s actuary provides the following information about the
plan.
January 1, 2017
December 31, 2017
Vested benefit obligation
$1,650
$1,750
Accumulated benefit obligation
1,750
2,750
Projected benefit obligation
2,250
3,560
Plan assets (fair value)
1,730
2,640
Settlement rate and expected rate of return
10
%
Pension asset/liability
520
?
Service cost for the year 2017
440
Contributions (funding in 2017)
750
Benefits paid in 2017
210
(a) Compute the actual return...
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