Question
Laura Tea Company provided the following information related to its defined benefit pension plan. Defined benefit pension plan information Beginning plan assets at fair value(equal
Laura Tea Company provided the following information related to its defined benefit pension plan.
Defined benefit pension plan information
Beginning plan assets at fair value(equal to market-related asset value) $943,500
Beginning projected benefit obligation $1,011,340
Service cost for the year $76500
Settlement rate 10%
Expected return on plan assets 14%
Actual return on plan assets $103,270
Contributions for the year $72,580
Benefit payments for the year $46,270
Beginning accumulated other comprehensive income related to prior service costs(debit balance) $67,840
Amortization of prior service costs $15,500
Increase in the ending projected benefit obligation due to changes in the actuarial assumptions $70,625
Average remaining service life of employee base 10 years
Requirement A. Compute the total pension cost for the year. Select the labels and enter the amounts for all items that are included in the pension cost for the year.
B. Determine the ending balances of the plan assets and the projected benefit obligation and indicate the funding status of the plan. Begin by selecting the labels and entering the amounts to deternine the ending balance of the projected benefit obligation.
Select the labels and enter the amounts to determine the balance of the plan assets at the end of the year.
Indicate the funded status of the plan: The ending funded status of the plan is a ___ ____
C. Determine the ending balance for accumulated other comprehensive income. Reconcile the ending balance in accumulated other comprehensive income. Select the labels and enter the amounts to determine the balance in the accumulated other comprehensive income account at the end of the year.
Unamortized prior service cost | unamortized net actuarial losses | total AOCI | |
Beginning Balances | |||
Ending balances |
D. Prepare the journal entry to record the current years pension cost.
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