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Information for the Jenkins Company defined benefit pension plan follows. The company uses the straight-line method to amortize prior service cost, and uses the corridor
Information for the Jenkins Company defined benefit pension plan follows. The company uses the straight-line method to amortize prior service cost, and uses the corridor approach in amortizing pension gains and losses. Account Balances Jan. 1 Projected Benefit Obligation $700,000 Cr. Plan Assets 500,000 Dr. Accumulated OCIPension Gain/Loss 160,000 Cr. Accumulated OCIPrior Service Cost 120,000 Dr. Activity for the Current Year Service cost $60,000 Actuarial loss determined Dec. 31 40,000 Actual return on plan assets 55,000 Funding 88,000 Benefits paid - Other Discount rate 8% Expected rate of return on plan assets 10% Average remaining service period of active plan participants 10 years Required a. Prepare the presentation of funded status as of December 31 of the prior year. b. Prepare entries to record (1) pension expense, (2) gain or loss deferrals, (3) contributions, and (4) benefits for the current year. c. Prepare the presentation of funded status as of December 31 of the current year. d. Determine the amount of amortization of net unrecognized gain or loss required for next year, if any. e. Prepare a pension worksheet for the current year
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