Question
Henning Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017
Henning Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid.
1. | The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $56,000. | |
2. | The companys funding policy requires a contribution to the pension trustee amounting to $145,000 for 2017. | |
3. | As of January 1, 2017, the company had a projected benefit obligation of $900,000, an accumulated benefit obligation of $800,000, and a debit balance of $400,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $600,000 at the beginning of the year. The actual and expected return on plan assets was $54,000. The settlement rate was 9%. No gains or losses occurred in 2017 and no benefits were paid. | |
4. | Amortization of prior service cost was $50,000 in 2017. Amortization of net gain or loss was not required in 2017. |
Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)
Components of Pension Expense | ||
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select a component of Pension Expense |
$enter a dollar amount | ||
select a component of Pension Expense |
enter a dollar amount | ||
select a component of Pension Expense |
enter a dollar amount | ||
select a component of Pension Expense |
enter a dollar amount | ||
select a component of Pension Expense |
$enter a total amount |
Prepare the journal entry or entries to record pension expense and the employers contribution to the pension trustee in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation | Debit | Credit |
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enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Henning Company for the year 2017.
Henning Company Income Statement (Partial) choose the accounting period |
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select an income statement item |
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select an income statement item |
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$enter a dollar amount |
Henning Company Comprehensive Income Statement choose the accounting period |
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select a comprehensive income item |
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$XXXX | ||
select an opening section name |
select a comprehensive income item |
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enter a dollar amount | ||
select a closing name for this statement |
$XXXX |
Henning Company Balance Sheet (Partial) choose the accounting period |
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select an opening name for section one |
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select a balance sheet item |
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$enter a dollar amount | ||||||
select an opening name for section two |
select a balance sheet item |
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$enter a dollar amount |
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