Exercise 20-11 (Part Level Submission) Sweet Company sponsors a defined benefit
ID: 2543076 • Letter: E
Question
Exercise 20-11 (Part Level Submission) Sweet Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $56,300 1. 2- The company's funding policy requires a contribution to the pension trustee amounting to $144,770 for 2017. 3. As of January 1, 2017, the company had a projected benefit obligation of $903,000, an accumulated benefit obligation of $796,500, and a debit balance of S398,000 in accumulated OCI (PSC)·The fair value of pension plan assets amounted to $595,000 at the beginning of the year. The actual and expected return on plan assets was $54,000. The settlement rate was 9%. No gains or losses occurred in 2017 and no benefits were paid. 4. Amortization of prior service cost was $49,900 in 2017. Amortization of net gain or loss was not required in 2017 Your answer is correct. Determine the amounts of the components of pension expense that should be recognized by the company in 2017 (Enter amounts that reduce pension expense with either a negative sign Components of Pension Expense ice Co 630 unterest on Projested Benefit Obligation 1270 Amortiz Prior Service Cost N990 s33470 Attempts: 2 of 3 used Prepare the journal entry or entries to record pension expense and the employer's contribution to the pension trustee in 2017. (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 O for the amounts.) Account Titles and Explanation Debit Credit Attempts: O of 3 used The parts of this question must be completed in arder. This part will be available when you complete the part aboveExplanation / Answer
Particulars
Debit ( $ )
Credit ( $ )
Pension Expense A/c Dr
1,33,470
Pension Asset A/c Dr
4,59,130
To Cash A/c Cr
1,44,700
To Other Comprehensive Income A/c Cr
49,900
To Other Comprehensive Income A/c Cr
3,98,000
Particulars
Debit ( $ )
Credit ( $ )
Pension Expense A/c Dr
1,33,470
Pension Asset A/c Dr
4,59,130
To Cash A/c Cr
1,44,700
To Other Comprehensive Income A/c Cr
49,900
To Other Comprehensive Income A/c Cr
3,98,000
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