Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ACCTG 334 Ch 17 Pensions In-Class Pension Problem Martinez Company sponsors a defined benefit pension plan for its employees. The following data relate to the
ACCTG 334 Ch 17 Pensions In-Class Pension Problem Martinez Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2017 and 2018. 2018 Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Prior service cost, January 1 Other Comprehensive Income - Gain, Jan 1 Service cost Discount rate (Pension Expense -Interest) Expected rate of return Actual return on plan assets Annual contributions Benefits paid retirees Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 2017 $602,300 413,300 169,500 11,500 41,400 9% 8% 39,600 97,000 35,700 726,600 20.5 years $68,900 9% 8% 65,100 87,700 56,030 797,600 20 years 467,000 At the beginning of 2017, the pension plan was amended causing an increase in prior service cost of $27,250. Further, due to changes in actuarial assumptions during 2017, the pension benefit obligation decreased by $128,000. Prepare a pension worksheet presenting both years (2017 and 2018) and prepare the related journal entries
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started