Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the companys defined benefit pension plan for the year ended December 31, 2014 January 1, 2014 December 31, 2014 Projected benefit obligation $1,431,500 $1,464,400 Market related and fair value of plan assets 872,500 1,302,950 Accumulated benefit obligation 1,477,200 1,587,770 Accumulated OCI (G L)Net gain 0 (193,150 ) The service cost component of pension expense for employee services rendered in the current year amounted to $82,900 and the amortization of prior service cost was $110,570 The companys actual funding (contributions) of the plan in 2014 amounted to $343,200 The expected return on plan assets and the actual rate were both 10 the interest discount (settlement) rate was 10 Accumulated other comprehensive income (PSC) had a balance of $1,105,700 on January 1, 2014 Assume no benefits paid in 2014 Determine the amounts of the components of pension expense that should be recognized by the company in 2014 (Enter negative amounts using either a negative sign preceding the number e g 45 or parentheses e g (45) ) Components of Pension Expense Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost $ Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the journal entry to record pension expense and the employers contribution to the pension plan in 2014 (Credit account titles are automatically indented when amount is entered Do not indent manually ) Account Titles and Explanation Debit Credit (To record pension expense and employers contribution)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 05, 2024

Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the companys defined benefit pension plan for the year

Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the companys defined benefit pension plan for the year ended December 31, 2014.

	January 1, 2014	December 31, 2014
Projected benefit obligation	$1,431,500	$1,464,400
Market-related and fair value of plan assets	872,500	1,302,950
Accumulated benefit obligation	1,477,200	1,587,770
Accumulated OCI (G/L)Net gain	0	(193,150	)

The service cost component of pension expense for employee services rendered in the current year amounted to $82,900 and the amortization of prior service cost was $110,570. The companys actual funding (contributions) of the plan in 2014 amounted to $343,200. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,105,700 on January 1, 2014. Assume no benefits paid in 2014.

Determine the amounts of the components of pension expense that should be recognized by the company in 2014. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Components of Pension Expense
Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost		$
Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost
Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost
Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare the journal entry to record pension expense and the employers contribution to the pension plan in 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)