Exercise 20-3

Novak Company provides the following information about its defined benefit pension plan for the year 2017.

Service cost $90,800 Contribution to the plan 106,900 Prior service cost amortization 9,000 Actual and expected return on plan assets 63,500 Benefits paid 40,100 Plan assets at January 1, 2017 642,500 Projected benefit obligation at January 1, 2017 707,800 Accumulated OCI (PSC) at January 1, 2017 152,900 Interest/discount (settlement) rate 11 %

Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017. (Enter all amounts as positive.)

NOVAK COMPANY Pension Worksheet2017. General Journal Entries Memo Record Items Annual Pension Expense Cash OCI Prior Service Cost Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, January 1, 2017 $ 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. Interest cost 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. Amortization of PSC 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. Benefits 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. Accumulated OCI, Dec. 31, 2016 Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Balance, Dec. 31, 2017 $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. $ Dr. Cr.

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

Prepare the journal entry recording pension expense. (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