Question 25

Blossom Company received the following selected information from its pension plan trustee concerning the operation of the companys defined benefit pension plan for the year ended December 31, 2017.

		January 1, 2017		December 31, 2017
Projected benefit obligation		$1,488,000		$1,514,000
Market-related and fair value of plan assets		809,000		1,135,900
Accumulated benefit obligation		1,600,000		1,718,800
Accumulated OCI (G/L)Net gain		0		(198,800	)

The service cost component of pension expense for employee services rendered in the current year amounted to $76,000 and the amortization of prior service cost was $118,800. The companys actual funding (contributions) of the plan in 2017 amounted to $246,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,188,000 on January 1, 2017. Assume no benefits paid in 2017.

Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)

Components of Pension Expense
Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost		$
Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost
Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost
Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost

SHOW LIST OF ACCOUNTS

Prepare the journal entry to record pension expense and the employers contribution to the pension plan in 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.)

Account Titles and Explanation	Debit	Credit
(To record pension expense and employers contribution)

SHOW LIST OF ACCOUNTS

Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Blossom Company for the year 2017.

Blossom Company Income Statement (Partial) December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
DividendsExpensesNet Income / (Loss)Retained Earnings January 1, 2017Retained Earnings December 31, 2017RevenuesTotal ExpensesTotal Revenues
Amortization of PSC Interest Expense Pension Expense Rent Expense Service Cost		$

Blossom Company Comprehensive Income Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
DividendsExpensesNet Income / (Loss)Retained Earnings January 1, 2017Retained Earnings December 31, 2017RevenuesTotal ExpensesTotal Revenues		$XXXX
Amortization of PSCComprehensive IncomeInterest ExpenseLiability GainPension ExpenseRent ExpenseService CostOther Comprehensive Income (Loss)
Amortization of PSC Comprehensive Income Interest Expense Liability Gain Pension Expense Rent Expense Service Cost Other Comprehensive Income (Loss)	$
Amortization of PSC Comprehensive Income Interest Expense Liability Gain Pension Expense Rent Expense Service Cost Other Comprehensive Income (Loss)
Amortization of PSCComprehensive IncomeInterest ExpenseLiability GainPension ExpenseRent ExpenseService CostOther Comprehensive Income (Loss)		$XXXX

Blossom Company Balance Sheet (Partial) December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Current AssetsLiabilitiesIntangible AssetsProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAccumulated Other Comprehensive Income (G/L)Accumulated Other Comprehensive Loss (G/L)Accumulated Other Comprehensive Income (PSC)Accumulated Other Comprehensive Loss (PSC)Common StockPension LiabilityRetained Earnings			$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAccumulated Other Comprehensive Income (G/L)Accumulated Other Comprehensive Loss (G/L)Accumulated Other Comprehensive Income (PSC)Accumulated Other Comprehensive Loss (PSC)Common StockPension LiabilityRetained Earnings			$
Accounts PayableAccounts ReceivableAccumulated DepreciationAccumulated Other Comprehensive Income (G/L)Accumulated Other Comprehensive Loss (G/L)Accumulated Other Comprehensive Income (PSC)Accumulated Other Comprehensive Loss (PSC)Common StockPension LiabilityRetained Earnings