Problem 20-7 Your answer is partially correct. Try again. Marin 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) Projected benefit obligation Pension asset/liability Prior service cost Net gain or loss (debit) $565,000 656,000 91,000 Cr. 86,000 92,000 As a result of the operation of the plan during 2017, the actuary provided the following additional data for 2017. $98,000 Service cost for 2017 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets in 2017 Amortization of prior service cost Contributions in 2017 Benefits paid retirees in 2017 Average remaining service life of active employees 50,000 26,000 126,000 92,000 10 years Using the preceding data, compute pension expense for Marin Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) MARIN CORP. Pension Worksheet-2017 General Journal Entries OCI-Prior OCI - Gain/ Service Cost Loss Memo Record Projected Benefit Annual Pension Expense Penison Asset Penison Asset/ Liability Projected Benefit Plan Assets Items Balance, Jan. 1, 2017 91000T Cr. 656,000 Cr. 565,000 Dr. 4 22 Service cost 980007 Dr. 980001 Cr. Interest cost 59040 Cr. 590407 Dr. 50000" Cr. A T Actual return T O T T 50,000T Dr. 2 Unexpected loss 65007 6500 Amortization of PSC 26000T Dr. 26000T Cr. Amortization of loss Nex 2000|| Cr. Contributions INTT UT1260007 Dr. Benefits TOIMITI 20000 DA 92,0007 Dr. 92,000 Cr. Journal entry for 2017 26000T Cr. Accumulated OCI, Dec. 31, 2016 Balance, Dec. 31, 2017 Use the market-related asset value to compute the expected return and for corridor amortization. Expected return 50000 Corridor amortization 2640 Problem 20-7 Your answer is partially correct. Try again. Marin 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) Projected benefit obligation Pension asset/liability Prior service cost Net gain or loss (debit) $565,000 656,000 91,000 Cr. 86,000 92,000 As a result of the operation of the plan during 2017, the actuary provided the following additional data for 2017. $98,000 Service cost for 2017 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets in 2017 Amortization of prior service cost Contributions in 2017 Benefits paid retirees in 2017 Average remaining service life of active employees 50,000 26,000 126,000 92,000 10 years Using the preceding data, compute pension expense for Marin Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) MARIN CORP. Pension Worksheet-2017 General Journal Entries OCI-Prior OCI - Gain/ Service Cost Loss Memo Record Projected Benefit Annual Pension Expense Penison Asset Penison Asset/ Liability Projected Benefit Plan Assets Items Balance, Jan. 1, 2017 91000T Cr. 656,000 Cr. 565,000 Dr. 4 22 Service cost 980007 Dr. 980001 Cr. Interest cost 59040 Cr. 590407 Dr. 50000" Cr. A T Actual return T O T T 50,000T Dr. 2 Unexpected loss 65007 6500 Amortization of PSC 26000T Dr. 26000T Cr. Amortization of loss Nex 2000|| Cr. Contributions INTT UT1260007 Dr. Benefits TOIMITI 20000 DA 92,0007 Dr. 92,000 Cr. Journal entry for 2017 26000T Cr. Accumulated OCI, Dec. 31, 2016 Balance, Dec. 31, 2017 Use the market-related asset value to compute the expected return and for corridor amortization. Expected return 50000 Corridor amortization 2640
