Exercise 20-10 (Part Level Submission) Webb Corp. sponsors a defined benefit pen

Question

Exercise 20-10 (Part Level Submission)

Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following balances relate to this plan.

As a result of the operation of the plan during 2014, the following additional data are provided by the actuary.

Plan assets $486,570 Projected benefit obligation 601,900 Pension asset/liability 115,330 Accumulated OCI (PSC) 102,010 Dr. Using the data above, compute pension expense for Webb Corp. for the year 2014 by preparing a pension worksheet. WEBB CORP Pension Worksheet eneral Journal Entries Memo Recor Annual Pension OCI-Gain/ OCI-Prior Service C Pension Asset/ abilit Projected Benefit Obligation Plan Asse Cash Balance, Jan. 1, 2014 Service cost Interest cost Actual return Unexpected gain Amortization of PSC Liability increase Benefits Journal entry for 2014 Accumulated OCI, Dec. 31, 2013 Balance, December 31, 2014 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Service Cost $ 91,500 Interest cost $ 60,190 Expected return on plan assets $ -62,680 Amortization of prior service cost $ 19,650 Actuarial Loss(85230-60190) $ 25,040 Pension Expense $ 133,700 Pension Expense 133700 Deferred pension liability 29700 Cash 104000 Unamortized PSC(102010-19650) $ 82,360 Unrecognized actuarial loss gain $ 56,300 (difference between actual and expected return is added)

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