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he following defined pension data of Rydell Corp. apply to theyear 2014.

Projected benefit obligation, 1/1/14 (before amendment) $564,000
Plan assets, 1/1/14 548,900
Pension liability 15,100
On January 1, 2014, Rydell Corp., through plan amendment,
grants prior service benefits having a presentvalue of		 128,900
Settlement rate 10 %
Service cost 60,000
Contributions (funding) 74,200
Actual (expected) return on plan assets 59,900
Benefits paid to retirees 47,900
Prior service cost amortization for 2014 20,200


For 2014, prepare a pension worksheet for Rydell Corp. that showsthe journal entry for pension expense and the year-end balances inthe related pension accounts.

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Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

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Related questions

Pharoah Corp. sponsors a defined benefit pension plan for itsemployees. On January 1, 2017, the following balances relate tothis plan.

Plan assets $498,300

Projected benefit obligation 614,700

Pension asset/liability 116,400

Accumulated OCI (PSC) 96,900 Dr.

As a result of the operation of the plan during 2017, thefollowing additional data are provided by the actuary.

Service cost $92,500

Settlement rate, 9%

Actual return on plan assets 54,200

Amortization of prior service cost 18,100

Expected return on plan assets 51,200

Unexpected loss from change in projected benefit obligation,

due to change in actuarial predictions 74,200

Contributions 97,200

Benefits paid retirees 82,600

Using the data above, compute pension expense for Pharoah Corp.for the year 2017 by preparing a pension worksheet. (Enter allamounts as positive.)

PHAROAH CORP.

Pension Worksheet

General Journal Entries

Memo Record

Items

Annual Pension

Expense

Cash

OCI—Prior

Service Cost

OCI— Gain/

Loss

Pension Asset/

Liability

Projected Benefit

Obligation

Plan

Assets

Balance, Jan. 1, 2017

$

$

$

$

$

$

$

Service cost

Interest cost

Actual return

Unexpected gain

Amortization of PSC

Liability increase

Contributions

Benefits

Journal entry for 2017

$

$

Accumulated OCI, Dec. 31, 2016

Balance, December 31, 2017

$

$

$

$

$

Prepare the journal entry for pension expense for 2017. (Creditaccount titles are automatically indented when amount is entered.Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

The following facts apply to the pension plan of Sandhill Inc.for the year 2017.

Plan assets, January 1, 2017 $524,400

Projected benefit obligation, January 1, 2017 524,400

Settlement rate 8 %

Service cost 42,000

Contributions (funding) 25,000

Actual and expected return on plan assets 45,400

Benefits paid to retirees 32,900

Using the preceding data, compute pension expense for the year2017. As part of your solution, prepare a pension worksheet thatshows the journal entry for pension expense for 2017 and theyear-end balances in the related pension accounts. (Enter allamounts as positive.)

SANDHILL INC.

Pension Worksheet—2017

General Journal Entries

Memo Record

Items

Annual Pension

Expense

Cash

Pension Asset/

Liability

Projected Benefit

Obligation

Plan

Assets

Balance, January 1, 2017

$

$

$

$

$

Service cost

Interest cost

Actual return

Contributions

Benefits

Journal entry, December 31

$

$

Balance, December 31, 2017

$

Problem I

Mangrove Corp. sponsors a defined benefit pension plan for itsemployees. On January 1, 2017, the following balances related tothis plan.
Plan assets (market-related value) $360,000
Projected benefit obligation (520,000)
Pension asset/liability (160,000).
Prior service cost 105,000
Excess Net (gain) or loss in AOCI 71,000
As a result of the operation of the plan during 2017, the actuaryprovided the following additional data at December 31, 2017.
⦁ Service cost for 2017 - $94,000
⦁ Settlement rate, 6%; expected return rate - 8%;Actual return rate 10%
⦁ Contributions in 2017 - $80,000
⦁ Benefits paid retirees in 2017 - $74,000
⦁ Average remaining service life of active employees- 5years
Instructions
Using the preceding data, compute pension expense for MangroveCorp. for the year 2017 by preparing a pension worksheet that showsthe journal entry for pension expense. Use the market-related assetvalue to compute the expected return and for corridor amortization.Show the following:
⦁ Your pension worksheet
⦁ Your pension expense entry
⦁ The computations for any part that requirescomputation, including
⦁ Interest cost
⦁ Expected return on plan assets
⦁ Amortization of Prior service cost
⦁ Amortization of Excess gains/losses in AOCI withcorridor computation

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