Kramer Co. has prepared the following pension worksheet (amounts in $). Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing both the worksheet and the accounting tasks related to the pension plan for 2022.

Instructions

a. Determine the missing amounts in Kramer’s 2022 pension worksheet, indicating whether the amounts are debits or credits.

b. Prepare the journal entry to record 2022 pension expense.

c. Determine for 2022 the discount rate used to determine interest expense/revenue.

Transcribed Image Text:

Pension Worksheet-Kramer Co. Home Insert Page Layout Formulas Data Review View P18 A D E G 2 General Journal Entries Memo Record 3 Annual Pension Defined 4. Pensin OCi- Asset/ Liability Obligation Plan Assets 120,000 Cr. 325,000 Cr. 205,000 Dr. Benefit Items Expense Cash Gain/Loss 6 Balance, Jan. 1, 2022 7 Service cost (1) 20,000 Cr. 8 Interest expense (2) 26,000 Cr. 9 Interest revenue (3) 16,400 Dr. 10 Contributions 41,000 Cr. 41,000 Dr. 11 Benefits 15,000 Dr. 15,000 Cr. 12 Asset gain 13 Liability loss 14 Journal entry for 2022 (4) 1,600 Dr. (5) (8) 43,500 Cr. (6) (7) (9) 15 Accumulated OCI, Dec. 31, 2021 16 Balance, Dec. 31, 2022 41,900 150,500 Cr. 399,500 Cr. 249,000 Dr. 17