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Problem 20-7 Waterway Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan Plan
Problem 20-7 Waterway Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan Plan assets (market-related value) $470,000 727,000 Projected benefit obligation Pension asset/liability 257,000 Cr Prior service cost 89,000 Net gain or loss (debit) 86,000 As a result of the operation of the plan during 2017, the actuary provided the following additional data for 2017. Service cost for 2017 $102,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets in 2017 42,000 Amortization of prior service cost 22,000 Contributions in 2017 126,000 Benefits paid retirees in 2017 90,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Waterway Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) WATERWAY CORP Pension Worksheet-2017 General Journal Entries Memo Record OCI- Gain/ Annual Pension I-Prior Service Cost Penison Asset/ Liability Projected Benefit Obligation Plan Items Expense Cash Loss Assets Balance, Jan. 1, 2017 Service cost Interest cost Actual return Unexpected loss T Amortization of PSC T Amortization of loss Contributlons Benefits Journal entry for 2017 Accumulated OCI, Dec. 31, 2016 Balance, Dec. 31, 2017 4 Use the market-related asset value to compute the expected return and for corridor amortization Expected return Corridor amortization A
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