The information below was provided relative to the pension plan for Atlas Wholesale Company for the years 2013-2015.

Instructions:
1. Compute the amount of net periodic pension expense for each of the three years. Assume that the deferred net pension loss relates only to the difference between the actual and expected return on the pension fund. Also note that this deferred loss is never amortized in 2013, 2014, or 2015 because it is always less than the 10% corridor amount (although it will be amortized in 2016).
2. Prepare the journal entries for recording the net pension expense and the pension funding for the three years.
3. Identify the pension balance sheet accounts and their amounts as of December 31, 2015.

Transcribed Image Text:

January 1, 2013 December 31, 2013 December 31, 2014 December 31, 2015 $27,525 $30,200 PBO Fair value of the pension Service cost plus interest cost less $28,900 fund 23,600 27,730 29,830 29,730 actual return on plan assets. Contributions made to pension Deferred net pension loss (gain) Prior service cost 215 1,710 3,810 2,410 3,795 0 fund 2,970 2,510 2,520 0 0