Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NC co. has a non contributory benefit pension plan for its employees. The data available at year-end are as follows: Balance Jan 1. 2021 PBO

NC co. has a non contributory benefit pension plan for its employees. The data available at year-end are as follows:

Balance Jan 1. 2021

PBO 95,000 Cr

Plan Assets 100,000 Dr

Accumulated OCI- PSC 12,500 Dr

Accumulated OCI-Pension Gain/loss 25,000 Dr

Activity 2021

Service cost 12,000

Actuarial loss on PBO (determined 12/31/21) 4,000

Prior service cost amortization 1,250

Actual Return on plan assets 6,000

Pension benefits paid 1,000

Contribution to pension fund 15,000

Other 2021

Expected return on plan assets 7%

discount rate 9%

average remaining service period 10yr

Required:

1. Prepare a worksheet to summarize the pension data at the end of 2021

2. Assume that NC Co. uses the corridor approach in amortizing any pension

Prepare the journal entry for the pension expense

3. Calculate the ending balances for the following accounts: 

PBO, Plan Assets, Accumulated OCI-PSC, Accumulated OCI, Gain/loss

Step by Step Solution

3.33 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

1 Worksheet to Summarize Pension Data at the End of 2021 Account Jan 1 2021 Activity 2021 Dec 31 202... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163

More Books

Students also viewed these Accounting questions

Question

Draw a schematic diagram of I.C. engines and name the parts.

Answered: 1 week ago