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. 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 | |||||||||||||||||||||
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Essentials Of Cost Accounting For Health Care Organizations
Authors: Steven Finkler, Judith Baker, David Ward
3rd Edition
0810235447, 9780763738136
