Webb Corp sponsors a defined benefit pension plan for its employees On January 1, 2014, the following balances relate to this plan Plan assets $480,000 Projected benefit obligation 600,000 Pension asset liability 120,000 Accumulated OCI (PSC) 100,000 Dr As a result of the operation of the plan duri...

The Answer is in the image, click to view ...

Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following

Fantastic news! We've Found the answer you've been seeking!

Question:

Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following balances relate to this plan.

Plan assets	$480,000
Projected benefit obligation	600,000
Pension asset/liability	120,000
Accumulated OCI (PSC)	100,000	Dr.

As a result of the operation of the plan during 2014, the following additional data are provided by the actuary.

Service cost	$90,000
Settlement rate, 9%
Actual return on plan assets	55,000
Amortization of prior service cost	19,000
Expected return on plan assets	52,000
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions	76,000
Contributions	99,000
Benefits paid retirees	85,000

Using the data above, compute pension expense for Webb Corp. for the year 2014 by preparing a pension worksheet.

WEBB CORP. Pension Worksheet

General Journal Entries

Memo Record

Items

Annual Pension Expense

Cash

OCIPrior Service Cost

OCI Gain/ Loss

Pension Asset/ Liability

Projected Benefit Obligation

Plan Assets

Balance, Jan. 1, 2014

Dr.Cr.

Service cost

Dr.Cr.

Interest cost

Dr.Cr.

Actual return

Dr.Cr.

Unexpected gain

Dr.Cr.

Amortization of PSC

Dr.Cr.

Liability increase

Dr.Cr.

Contributions

Dr.Cr.

Benefits

Dr.Cr.

Journal entry for 2014

Dr.Cr.

Accumulated OCI, Dec. 31, 2013

Dr.Cr.

Balance, December 31, 2014

Dr.Cr.

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare the journal entry for pension expense for 2014.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Posted Date: Jun 21, 2024 11:08 PM

See More Questions

Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following

Question:

Expert Answer:

Students also viewed these accounting questions