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Problem 20-9 Swifty Co. has the following defined benefit pension plan balances on January 1, 2017. Projected benefit obligation $4,630,000 Fair value of plan assets

Problem 20-9 Swifty Co. has the following defined benefit pension plan balances on January 1, 2017.
Projected benefit obligation $4,630,000
Fair value of plan assets 4,630,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $601,000 are created. Other data related to the pension plan are:
2017 2018
Service cost $150,000 $168,000
Prior service cost amortization 0 91,000
Contributions (funding) to the plan 200,000 184,000
Benefits paid 222,000 279,000
Actual return on plan assets 250,000 352,000
Expected rate of return on assets 6 % 8 %
Prepare a pension worksheet for the pension plan in 2017.(Enter all amounts as positive.)
SWIFTY COMPANY Pension Worksheet2017
General Journal Entries Memo Record
Items Annual Pension Expense Cash OCIPrior Service Cost OCI Gain/ Loss Pension Asset/ Liability Projected Benefit Obligation Plan Assets
Balance, Jan. 1, 2017 $ Dr.Cr. $ Dr.Cr. $ Dr.Cr. $ Dr.Cr. $ Dr.Cr. $ Dr.Cr. $ Dr.Cr.
Service cost Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Interest cost Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Actual return Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Unexpected loss Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Contributions Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Benefits Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Journal entry for 2017 $ Dr.Cr. $ Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Accumulated OCI Dec. 31, 2016 Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Balance, Dec. 31, 2017 $ Dr.Cr. $ Dr.Cr. $ Dr.Cr. $ Dr.Cr. $ Dr.Cr.
Prepare any journal entries related to the pension plan that would be needed at December 31, 2017.(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, 2017
Prepare a pension worksheet for 2018.(Enter all amounts as positive.)
SWIFTY COMPANY Pension Worksheet2017 and 2018
General Journal Entries Memo Record
Items Annual Pension Expense Cash OCIPrior Service Cost OCI Gain/ Loss Pension Asset/ Liability Projected Benefit Obligation Plan Assets
Balance, Jan. 1, 2017 $4,630,000 Cr. $4,630,000 Dr.
Service cost $150,000 Dr. 150,000 Cr.
Interest cost 463,000 Dr. 463,000 Cr.
Actual return 250,000 Cr. 250,000 Dr.
Unexpected loss 27,800 Dr. $27,800 Dr.
Contributions $200,000 Cr. 200,000 Dr.
Benefits 222,000 Dr. 222,000 Cr.
Journal entry for 2017 $335,200 Dr. $200,000 Cr. 27,800 Dr. $163,000 Cr.
Accumulated OCI Dec. 31, 2016 0
Balance, Dec. 31, 2017 $27,800 Dr. $163,000 Cr. 5,021,000 Cr. 4,858,000 Dr.
Additional PSC, 1/1/2018 Dr.Cr. Dr.Cr. $ Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Balance, Jan. 1, 2018 Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Service cost Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Interest cost Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Actual return Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Unexpected loss Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Amortization of PSC Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Contribution Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Benefits Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.
Journal entry for 2018 $ Dr.Cr. $ Dr.Cr. Dr.Cr. Dr.Cr. Dr.Cr.

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