Question

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, 2017

Prepare the journal entry recording pension expense

Answer 1

		Year 2017
1	Pension Expense	$          111,691
2	Journal entry
	Account title & Explaination	2017
	Debit	Credit
	Annual pension expense	111,691
	OCI-Prior Service Cost		10,600
	OCI-(Gain/Loss)		-
	Cash		107,100
	Net Pension Asset/liability	6,009
	(To record pension expense and remeasurement loss recorded)
3	Plan Asset	107,100
	Cash		107,100
	(To record the contribution made)
	Net Pension Asset/liability	40,800
	Cash		40,800
	(To record benefit paid)
4	Net Pension Asset/(liability)	$          (34,091)
5	Projected benefit obligation	$       (811,491)
	Plan Asset	$          777,400
	Plan Surplus/(Deficit)	$          (34,091)

Pension Worksheet 2017
Items	Annual Pension Expense	Cash		OCI-Prior Service Cost	OCI-Gain/(Loss)	Pension Asset/liability	Projected benefit obligation	Plan Asset
Balance, Jan 1,2017	$                     -	$                   -		$     148,600	$                     -	$        (40,100)	$              (688,100)	$               648,000
Past Service Cost created	$                     -	$                   -		$                 -	$                     -	$                    -	$                            -	$                          -
Service Cost	$            88,500	$                   -			$                     -	$                    -	$                (88,500)	$                          -
Interest Cost	$            75,691	$                   -			$                     -	$                    -	$                (75,691)	$                          -
Actual return	$          (63,100)	$                   -			$                     -	$                    -	$                            -	$                 63,100
Unexpected gain/ loss	$                     -	$                   -			$                     -	$                    -	$                            -	$                          -
Amortisation of PSC	$            10,600	$                   -		$     (10,600)	$                     -	$                    -	$                            -
Amortisation of OCI-Gain/loss	$                     -	$                   -		$                 -	$                     -	$                    -	$                            -
Liability (increases)/decreases	$                     -	$                   -			$                     -	$                    -	$                            -
Contributions	$                     -	$     (107,100)			$                     -	$                    -	$                            -	$               107,100
Benefits	$                     -	$                   -			$                     -	$                    -	$                   40,800	$               (40,800)
	$                     -	$                   -			$                     -	$                    -	$                            -	$                          -
Journal entry for 2017	$          111,691	$     (107,100)		$     (10,600)	$                     -	$             6,009	$              (123,391)	$               129,400
Accumulated OCI dec 31, 2017	$                     -	$                   -		$     148,600	$                     -	$                    -	$                            -	$                          -
Balance, December 31, 2017	$                     -	$                   -		$     138,000	$                     -	ekkarill92 Next > < Previous Related 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 152,100 Interest/discount (settlement) rate 9 % Requirements: Using Excel prepare a pension worksheet inserting January 1, 2017, balances,... Xyz Company provides the following information about its defined benefit pension plan for the year 2020.... 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