Question
PENCOMP's balance sheet at December 31, 2014, is as follows. PENCOMP, INC. BALANCE SHEET AS OF DECEMBER 31, 2014 Assets Liabilities Cash $438 Notes payable
PENCOMP's balance sheet at December 31, 2014, is as follows. PENCOMP, INC. BALANCE SHEET AS OF DECEMBER 31, 2014 Assets Liabilities Cash $438 Notes payable $1,000 Inventory 1,800 Pension liability 344 Total current assets 2,238 Total liabilities 1,344 Plant and equipment 2,000 Stockholders equity Accumulated depreciation (240 ) Common stock 2,000 1,760 Retained earnings 896 Total assets $3,998 Accumulated other comprehensive income (242 ) Total stockholders' equity 2,654 Total liabilities and stockholders equity $3,998 Additional information concerning PENCOMPs defined benefit pension plan is as follows. Projected benefit obligation at 12/31/14 $820.5 Plan assets (fair value) at 12/31/14 476.5 Unamortized past service cost at 12/31/14 150.0 Amortization of past service cost during 2015 15.0 Service cost for 2015 42.0 Discount rate 10 % Expected rate of return on plan assets in 2015 12 % Actual return on plan assets in 2015 10.4 Contributions to pension fund in 2015 70.0 Benefits paid during 2015 40.0 Unamortized net loss due to changes in actuarial assumptions and deferred net losses on plan assets at 12/31/14 92.0 Expected remaining service life of employees 15.0 Average period to vesting of prior service costs 10.0 Other information about PENCOMP is as follows. Salary expense, all paid with cash during 2015 $700.0 Sales, all for cash 3,000.0 Purchases, all for cash 2,000.0 Inventory at 12/31/15 1,800.0 Property originally cost $2,000 and is depreciated on a straight-line basis over 25 years with no residual value. Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year. Dividends declared and paid are $200 in 2015. Prepare an income statement for 2015. (Round answers to 1 decimal place, e.g. 52.7.) PENCOMP, INC. Income Statement for the year ended Dec. 31, 2015 $ $ $ Prepare a balance sheet as of December 31, 2015. (List Assets in order of liquidity. Round answers to 1 decimal place, e.g. 52.7.) PENCOMP, INC. Statement of Financial Position at Dec. 31, 2013 Assets: $ $ $ Liabilities and Stockholders' Equity $ $ $ Prepare pension expense journal entry for the year ended December 31, 2015. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 1 decimal place, e.g. 52.7.) Date Account Titles and Explanation Debit Credit Dec. 31, 2015 Pension Expense 351 Pension Asset/Liability 344 Cash 438 Other Comprehensive Income (G/L) 242 Other Comprehensive Income (PSC)
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