Problem 20-11 The following data relate to the operation of Culver Co.'s pension plan in 2018. Service cost Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Average service life of all employees $64,900 35,200 30,800 56,100 29,700 25 years The pension worksheet for 2017 is presented below. CULVER COMPANY Worksheet-2017 General Journal Entries Annual Pension Expense Cash OCI-Prior OCI - Pension Service Cost Gain/Loss Asset/Liability $132,000 Cr. Memo Record Projected Benefit Obligation Plan Assets $357,500 Cr. $225,500 Dr. 22,000 Cr. 28,600 Cr. 19,800 Dr. Items Balance, Jan. 1, 2017 Service cost Interest cost Actual return Unexpected loss Amortization of PSC Contributions Benefits Increase in PBO Journal entry for 2017 Accumulated OCI, Dec. 31, 2016 Balance, Dec. 31, 2017 $22,000 Dr. 28,600 Dr. 19,800 Cr. 2,750 Cr. 38,500 Dr. $2,750 Dr. $38,500 Cr. $45,100 Cr. 45,100 Dr 16,500 Cr. 16,500 Dr. 47,850 Cr. $66,550 Dr. $45,100 Cr. 33,550 Cr. 47,850 Dr. 38,500 Cr. 50,600 Dr. 88,000 Dr. $49,500 Dr. $50,600 Dr. $165,550 Cr. $439,450 Cr. $273,900 Dr. For 2018, Culver will use the same assumptions as 2017 for the expected rate of returns on plan assets. The settlement rate for 2018 is 10%. CULVER COMPANY Pension Worksheet-2018 General Journal Entries OCI-Prior OCI - Gain/ Service Cost Loss Annual Pension Expense Items Memo Record Projected Benefit Obligation Pension Asset/ Liability Cash Plan Assets Balance, Jan. 1, 2018 Service cost Interest cost Actual return Unexpected gain Amortization of PSC Amortization of loss Contributions Benefits Journal entry for 2018 Accumulated OCI, Dec. 31, 2017 Balance, Dec. 31, 2018 Calculate the amortization of the loss, if any, in 2018 using the corridor approach. (Round answers to o decimal places, e.g. 2,500.) Amortization of the loss Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31. (Round answers to 0 decimal places, e.g. 2,500. 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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2018 Pension Expense Pension Asset/Liability Cash Other Comprehensive Income (G/L) Other Comprehensive Income (PSC) SHOW LIST OF ACCOUNTS Indicate the pension amounts reported in the financial statements. (Round answers to 0 decimal places, e.g. 2,500.) Culver Co. Income Statement (Partial) For the Year Ended December 31, 2018 A Expenses Pension Expense Culver Co. Comprehensive Income Statement For the Year Ended December 31, 2018 1 Net Income / (Loss) $ XXX Other Comprehensive Income (Loss) - Asset Gain (Loss) Amortization of Loss Prior Service Cost Amortization Comprehensive Income (Loss) $ XXX Culver Co. Partial Balance Sheet December 31, 2018 Liabilities Pension Liability Stockholders' Equity Accumulated Other Comprehensive Loss (PSC) Accumulated Other Comprehensive Loss (G/L) A
