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 Worksheetâ2017
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
$
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 Worksheetâ2017
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
$
Related questions
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.
