Question
SuperSports provides you the following pension data for the year 2016. Item Service Cost, 2016 $248,000 Projected Benefit Obligation, January 2016 $340,000 Plan assets (fair
SuperSports provides you the following pension data for the year 2016.
Item
Service Cost, 2016 $248,000
Projected Benefit Obligation, January 2016 $340,000
Plan assets (fair value), Januray 1, 2016 $360,000
Prior Service Cost - AOCI (2016 amoritization, $25,000) $250,000
Net Loss - AOCI (2016 amoritization, $10,000) $110,000
Actual Return on Plan Assets $45,000
Interest rate and expected return on plan assets 10%
Contributions made to plan assets during 2016 $175,000
SuperSports requests you to:
1. Compute pension expense for the year 2016
2. Record 2016 journal entry for pension expense
Requirement 1 |
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Pension Expense for 2016 |
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Service Cost |
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Interest on PBO |
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Actual Return on Plan Assets |
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Unexpected Gain(Actual Return | ||||
on Plan Assets - Expected Return) |
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Amortization of Prior Service Cost-AOCI |
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Amortization of Net Loss- AOCI |
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Pension Expense |
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Requirement 2 |
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Pension Journal Entry for 2016 | |||
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Dr. Pension Expense | |||
Cr. AOCI-Prior Service Cost | |||
Cr. AOCI-Gain /Loss |
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Cr. Cash |
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Cr. Pension Liability |
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