Exercise 20-4

The following facts apply to the pension plan of Cullumber Inc. for the year 2017.

Plan assets, January 1, 2017 $510,700 Projected benefit obligation, January 1, 2017 510,700 Settlement rate 8 % Service cost 37,200 Contributions (funding) 25,400 Actual and expected return on plan assets 45,100 Benefits paid to retirees 31,100

Using the preceding data, compute pension expense for the year 2017. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2017 and the year-end balances in the related pension accounts. (Enter all amounts as positive.)

CULLUMBER INC. Pension Worksheet2017 General Journal Entries Memo Record Items Annual Pension Expense Cash Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, January 1, 2017 $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. $ Dr. Cr. Service cost Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Interest cost Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Actual return Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Contributions Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Benefits Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Journal entry, December 31 $ Dr. Cr. $ Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Balance, December 31, 2017 $ Dr. Cr. $ Dr. Cr. $ Dr. Cr.