Question

Tasty Dish Inc., a consumer foods company, reports the following information related to its only pension plan for 2013 (amounts in millions of U.S. dollars). Tasty Dish applies U.S. GAAP.
Pension Plan Assets, Beginning of 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,086
Plus Actual Return on Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513
Plus Employer Contribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Less Benefits Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . (233)
Pension Plan Assets, End of 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,385
Pension Plan Liability, Beginning of 2013 . . . . . . . . . . . . . . . . . . . . . . . . . $5,771
Plus Service Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
Plus Interest Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
Less Actuarial Gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (155)
Less Benefits Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (233)
Pension Plan Liability, End of 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,947
Service Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 245
Interest Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
Expected Return on Pension Plan Investments . . . . . . . . . . . . .. . . . . . . . . . . (391)
Amortization of Actuarial Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Net Pension Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 340

Give a single journal entry for Tasty Dish to recognize pension expense, the pension plan contribution, and the change in the net pension asset or net pension liability for 2013. Be sure to consider needed entries to Other Comprehensive Income, supporting these entries with amounts from the disclosures above. Ignore income taxes.



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  • CreatedMarch 04, 2014
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