Question
Pearl Company provides the following selected information related to its defined benefit pension plan for 2017. Pension asset/liability (January 1) $26,800 Cr. Accumulated benefit obligation
Pearl Company provides the following selected information related to its defined benefit pension plan for 2017.
Pension asset/liability (January 1) | $26,800 | Cr. | |
Accumulated benefit obligation (December 31) | 400,000 | ||
Actual and expected return on plan assets | 10,200 | ||
Contributions (funding) in 2017 | 150,700 | ||
Fair value of plan assets (December 31) | 792,200 | ||
Settlement rate | 10 | % | |
Projected benefit obligation (January 1) | 694,400 | ||
Service cost | 79,220
|
a. Compute Pension Expense for 2017: $ _____________
b. Prepare the journal entry to record pension expense and the employers contribution to the pension plan in 2017. Preparation of a pension worksheet is not required. Benefits paid in 2017 were $36,300. (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 title and explanation | debit | credit |
c. Indicate the pension-related amounts that would be reported in the companys income statement and balance sheet for 2017.
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