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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

Pension Expense for 2016

Service Cost

Interest on PBO

Actual Return on Plan Assets

Unexpected Gain(Actual Return

on Plan Assets - Expected Return)

Amortization of Prior Service Cost-AOCI

Amortization of Net Loss- AOCI

Pension Expense

Requirement 2

Pension Journal Entry for 2016

Dr. Pension Expense

Cr. AOCI-Prior Service Cost

Cr. AOCI-Gain /Loss

Cr. Cash

Cr. Pension Liability

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