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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 December 31, 2017. (Enter all amounts as positive.)

NOVAK 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, January 1, 2017
$

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$

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$

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$

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$

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$

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Service cost

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Interest cost

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Actual return

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Amortization of PSC

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Contributions

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Benefits

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Journal entry for 2017
$

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$

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Accumulated OCI, Dec. 31, 2016

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Balance, Dec. 31, 2017
$

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$

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$

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$

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SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT

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.)

Account Titles and Explanation
Debit
Credit

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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