Kramer Co. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing the worksheet and completing the accounting tasks related to the pension plan for 2015.

Instructions

(a) Determine the missing amounts in the 2015 pension worksheet, indicating whether the amounts are debits or credits.

(b) Prepare the journal entry to record 2015 pension expense for Kramer Co.

(c) Determine for Kramer for 2015 the discount rate used to determine interest expense/revenue.

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Pension Worksheet-Kramer Co.xls P18 Home Insart Page Layout Formulas Data Review View A B C D E F G 123456 General Journal Entries Memo Record Annual Pension Defined Pension Items Expense Cash OCI- Gain/Loss Asset/ Benefit Liability Obligation Plan Assets 6 Balance, Jan. 1, 2015 120,000 Cr. 325,000 Cr. 205,000 Dr. 7 Service cost (1) 20,000 Cr. 8 Interest expense (2) 26,000 Cr. 9 Interest revenue 10 Contributions 11 Benefits 12 Asset gain (3) 16,400 Dr. 41,000 Cr. 41,000 Dr. 15,000 Dr. 15,000 Cr. (4) 1,600 Dr. 13 Liability loss (5) 43,500 Cr. 14 Journal entry for 2015 (6) (7) (8) (9) 15 Accumulated OCI, Dec. 31, 2014 0 16 Balance, Dec. 31, 2015 41,900 150,500 Cr. 399,500 Cr. 249,000 Dr. 17