Novak corp.sponsors a defined benefit pension plan for its employees. On January

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Novak corp.sponsors a defined benefit pension plan for its employees. On January 1,2017,the following balances relate to this plan
Novak corp.sponsors a defined benefit pension plan for its employees. On January 1,2017,the following balances relate to this plan

Problem 20-7 Sheridan Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the foilowing bal Plan assets (market-related value) Projected benefit obligation Pension asset/liability Prior service cost Net gain or loss (debit) $525,000 695,000 170,000 Cr. 74,000 91,000 As a result of the operation of the plan during 2017, the actuary provided the following additional data for 201 Service cost for 2017 settlement rate, 9%; expected return rate, 10% $104,000 Actual return on plan assets in 201:7 Amortization of prior service cost 49,000 23,000 129,000 77,000 Contributions in 2017 Benefits paid retirees in 2017 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Sheridan Corp. for the year 2017 by preparing a pension work amounts as positive.) SHERIDAN CORP Pension Worksheet-2017 OCI-Prior OCI- Gain/ Annual Pension

Explanation / Answer

Scheridan Corporation Pension Work Sheet—2017 General Journal Entries Memo Entries Annual Pension Expense Cash Pension Asset/Liability OCI PSC OCI Gain / Loss Projected Benfit Obligation Plan Assets Bal., Jan 1 2017 -170000 74000 -695000 525000 Service Cost 104000 -104000 Interest Cost 62550 -62550 Annual Return -49000 49000 Adjustment 525000*10% Actual return - expected return 3500 -3500 Amortization of PSC 23000 -23000 Loss from Changed PBO 91000 -91000 Contribution -129000 129000 Benefit paid 77000 -77000 Bal., Dec. 31 2017 144050 -129000 -79550 -23000 87500 -875550 626000 -249550 51000 87500 2 Pension Expense 144050 Pension Asset/Liability 87500 Cash 129000 Other Comprehensive Income (PSC) 79550 Other Comprehensive Income (G/L) 23000

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