ent Exercise 20-10 Splish Corp. Plan assets Projected benefit obligation Pension

Question

ent Exercise 20-10 Splish Corp. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. $463,200 578,200 15,000 100,100 Dr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary. Service cost $86,600 Actual return on plan assets Amortization of prior service cost Expected return on plan assets Unexpected loss from change in projected benefit obligation, 53,200 18,000 50,200 due to change in actuarial predictions Contributions Benefits paid retirees 79,600 99,600 85,100 Using the data above, compute pension expense for Splish Corp. for the year 2017 by preparing a pension CORP General Journal Entries Memo re Art re Like Ki ..dfCS48 FINAL

Explanation / Answer

Annual pension expense Annual Pension plan Cash Pension Asset/Liability OCI PSC OCI Gain / Loss PBO Plan Assets Bal Jan -115000 100100 -578200 463200 Service Cost 86600 -86600 Interest Cost 46256 -46256 Actual/Expected Return -53200 -53200 Adjustment 3000 -3000 PSC Amortization 18000 -18000 Loss from changed PBO 79600 -79600 Contribution -99600 99600 Benefit Paid 85100 -85100 Balance, Jan 31, 100656 -99600 -59656 -18000 76600 -705556 424500 -174656 82100 76600 Interest Cost = 578200*8% Adj = 50200-53200 pension expense 100656 OCI gain / loss 76600 cash 99600 Pension Asset / liability 59656 OCI-PSC 18000

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