Exercise 20-10

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

Plan assets $477,500 Projected benefit obligation 609,400 Pension asset/liability 131,900 Accumulated OCI (PSC) 100,800 Dr.

As a result of the operation of the plan during 2017, the following additional data are provided by the actuary.

Service cost $90,600 Settlement rate, 9% Actual return on plan assets 56,600 Amortization of prior service cost 18,200 Expected return on plan assets 53,700 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 78,800 Contributions 102,900 Benefits paid retirees 81,300

Using the data above, compute pension expense for Nash Corp. for the year 2017 by preparing a pension worksheet. (Enter all amounts as positive.)

NASH CORP. Pension Worksheet General Journal Entries Memo Record Items Annual Pension Expense Cash OCIPrior Service Cost OCI Gain/ Loss Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, Jan. 1, 2017 $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. Service cost Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Interest cost Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Actual return Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Unexpected gain Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Amortization of PSC Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Liability increase Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Contributions Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Benefits Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Journal entry for 2017 $ Dr. Cr. $ Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Accumulated OCI, Dec. 31, 2016 Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Balance, December 31, 2017 $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. $ Dr. Cr.

SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT

Prepare the journal entry for pension expense for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation Debit Credit

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