Question
The accountant for Crane Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $ 565,000 Actual return on
The accountant for Crane Corporation has developed the following information for the company's defined-benefit pension plan for 2021:
| Service cost | $ 565,000 | |
| Actual return on plan assets | 276,000 | |
| Annual contribution to the plan | 946,000 | |
| Amortization of prior service cost | 127,600 | |
| Benefits paid to retirees | 73,000 | |
| Settlement rate | 10% | |
| Expected rate of return on plan assets | 8% |
The accumulated benefit obligation at December 31, 2021, amounted to $ 3,380,000.
(a)
Using the above information for Crane Corporation, complete the pension work sheet for 2021. (Do not leave any answer field blank. Enter 0 for amounts.)
| Crane Corporation Pension Work Sheet2021 | |||||||||||||||||||||
| General Journal Entries | Memo Entries | ||||||||||||||||||||
| Annual Pension Expense | Cash | OCIPrior Service Cost | OCI Gain/ Loss | Pension Asset/ Liability | Projected Benefit Obligation | Plan Assets | |||||||||||||||
| Balance, Dec. 31, 2020 | Dr.Cr._ | Dr.Cr._ | 638,000 | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | 4,130,000 | Dr.Cr._ | 2,815,000 | 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 gain/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._ | ||||||||||||||
| 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._ | ||||||||||||||
| Gain/loss Amortization | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | ||||||||||||||
| Journal entry for 2021 | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | ||||||||||||||
| Accumulated OCI, 12/31/20 | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | Dr.Cr._ | ||||||||||||||||
| Balance, Dec. 31, 2021 | |||||||||||||||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
