4. The following information relates to the defined benefit pension plan of Compton Corp. for the year ended December 31, 2019: (Click the icon to view the information.) There were no benefit payments for the year. Read the requirements Requirement a. Compute the total pension expense. (Round intermediary calculations to the nearest whole dollar.) The pension expense for the year ended December 31, 2019 is $ Requirement b. Prepare the journal entry to record pension expense for the year. (Abbreviation used: OCI = Other Comprehensive Income. Prepare a single compound entry for this transaction. Record debits first, then credits. Exclude explanations from any journal entries. If a beginning net pension asset becomes a net pension liability at the end of the year, be sure to reverse the net pension asset to zero before recording the net pension liability. If a beginning net pension liability becomes a net pension asset at the end of the year, be sure to reverse the net pension liability to zero before recording the net pension asset.) Account Current year (1) (2) (3) (4) (5) (6) Requirement c. Determine the ending balances of the projected benefit obligation, plan assets, the pension asset or liability reported on the balance sheet and accumulated other comprehensive income related to the pension plan. (Abbreviation used: Adj. = adjustment PSC = prior service cost) Determine the ending balance of the projected benefit obligation. Projected Benefit Obligation (9) (8) |(10) (12) (14) (11) (13) (15) (17) (16) Determine the ending balance of the plan assets. Plan Assets at Fair Value (19) (18) |(20) (22) (21) (23) (25) (24) (26) (27) Determine the ending balance of the pension asset or liability reported on the balance sheet The ending funded status of the plan is a $ (28) Determine the ending balance of the accumulated other comprehensive income. AOCI (29) (31) (33) (35) (37) (30) (32) (34) (36) (38) 1: Data Table Past service cost effective as of the beginning of the year) for a plan amendment $ 780,000 Projected benefit obligation - beginning balance 915,000 Fair value of plan assets at the beginning of the year (equal to the market related asset value) 1,250,000 Service cost 650,000 Interest on projected benefit obligation at 5.4155% Solve Amortization of prior service cost 78,000 Expected and actual return on plan assets 100,000 Contribution into the plan 290,000 Beginning funded status ($1,250,000 - $915,000) 335.000 * *=overfunded so that there is a pension asset on the balance sheet at the beginning of the year. 2: Requirements (Round all computations to the nearest dollar.) Compute the total pension expense. b. Prepare the journal entry to record pension expense for the year. Determine the ending balances of the projected benefit obligation, plan assets, the pension asset or liability reported on the balance sheet, and accumulated other comprehensive income related to the pension plan. c. 4. The following information relates to the defined benefit pension plan of Compton Corp. for the year ended December 31, 2019: (Click the icon to view the information.) There were no benefit payments for the year. Read the requirements Requirement a. Compute the total pension expense. (Round intermediary calculations to the nearest whole dollar.) The pension expense for the year ended December 31, 2019 is $ Requirement b. Prepare the journal entry to record pension expense for the year. (Abbreviation used: OCI = Other Comprehensive Income. Prepare a single compound entry for this transaction. Record debits first, then credits. Exclude explanations from any journal entries. If a beginning net pension asset becomes a net pension liability at the end of the year, be sure to reverse the net pension asset to zero before recording the net pension liability. If a beginning net pension liability becomes a net pension asset at the end of the year, be sure to reverse the net pension liability to zero before recording the net pension asset.) Account Current year (1) (2) (3) (4) (5) (6) Requirement c. Determine the ending balances of the projected benefit obligation, plan assets, the pension asset or liability reported on the balance sheet and accumulated other comprehensive income related to the pension plan. (Abbreviation used: Adj. = adjustment PSC = prior service cost) Determine the ending balance of the projected benefit obligation. Projected Benefit Obligation (9) (8) |(10) (12) (14) (11) (13) (15) (17) (16) Determine the ending balance of the plan assets. Plan Assets at Fair Value (19) (18) |(20) (22) (21) (23) (25) (24) (26) (27) Determine the ending balance of the pension asset or liability reported on the balance sheet The ending funded status of the plan is a $ (28) Determine the ending balance of the accumulated other comprehensive income. AOCI (29) (31) (33) (35) (37) (30) (32) (34) (36) (38) 1: Data Table Past service cost effective as of the beginning of the year) for a plan amendment $ 780,000 Projected benefit obligation - beginning balance 915,000 Fair value of plan assets at the beginning of the year (equal to the market related asset value) 1,250,000 Service cost 650,000 Interest on projected benefit obligation at 5.4155% Solve Amortization of prior service cost 78,000 Expected and actual return on plan assets 100,000 Contribution into the plan 290,000 Beginning funded status ($1,250,000 - $915,000) 335.000 * *=overfunded so that there is a pension asset on the balance sheet at the beginning of the year. 2: Requirements (Round all computations to the nearest dollar.) Compute the total pension expense. b. Prepare the journal entry to record pension expense for the year. Determine the ending balances of the projected benefit obligation, plan assets, the pension asset or liability reported on the balance sheet, and accumulated other comprehensive income related to the pension plan. c
