Journal entries aswell, Thanks Problem 2-Pensions Presented below is information

Question

Journal entries aswell, Thanks

Problem 2-Pensions Presented below is information related to Core Department Stores, Inc. pension plan for 2017 Plan Assets (Fair Value), January 1 Projected Benefit Obligation, January 1 Prior Service Cost, January 1 Service Cost Settlement Rate Actual Return on Plan Assets Expected Return on Plan Assets Pension Contributions by Core Accumulated benefit obligation at December 31 Average remaining service life of all employees Vested benefit obligation at December 31 $699,000 800,000 220,000 90,000 9% 996 64,500 10% 120,000 739,600 20 years 768,000 At the beginning of 2017, the actuary determines that the retirement period for all retirees will increase by an average of 2 years, increasing the projected benefit obligation by $152,000. Instructions Prepare the journal entry to record pension expense and the employer's contribution for 2017.

Explanation / Answer

Entry:

Particulars PBO Plan asset Net Asset /(Liability) Pension expense- Income statement Prior service cost- AOCI Net gain- AOCI Cash Balance, Jan1 800,000 699,000 -101,000 220000 Annual service cost 90,000 -90,000 90,000 Prior service cost amortisation 0 11,000 -11,000 Interest cost 9% 72,000 -72,000 72,000 Gain Amortisation 0.00 (Gain)/loss due to change in actuarial assumptions 152,000 -152,000 -152,000 Expected/ Acutal retun# 10% 64,500 -69,900 -5,400 Plan amendment 0 Benefits paid 0 Annual funding 120,000 120,000 Closing Balances 1,114,000 883,500 -295,000 103,100.00 209,000 -157,400.00

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