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 2025.

Instructions

a. Determine the missing amounts in the 2025 pension worksheet, indicating whether the amounts are debits or credits.

b. Prepare the journal entry to record 2025 pension expense for Kramer.

c. Determine the following for Kramer for 2025: (1) settlement rate used to measure the interest on the liability and (2) expected return on plan assets.

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AutoSave Off) 5 1 2 3 I X ✓ fx A Items 4 Balance, Jan. 1, 2025 5 Service cost 6 Interest cost 7 Actual return 8 Unexpected loss Amortization of PSC 9 10 Contributions 11 12 13 Journal entry for 2025 14 Accumulated OCI, Dec. 31, 2024 15 Balance, Dec. 31, 2025 Sheet1 Benefits Increase in PBO B Annual Pension Expense (1) (2) (3) $2,500 (5) (7) C D E Pension Worksheet-Kramer Co. General Journal Entries Cash $41,000 (8) OCI-Prior OCI- Service Cost Gain/Loss $35,000 (9) 80,000 $45,000 (4) (6) (10) 0 $46,000 F Pension Asset/ Liability $120,000 (11) G Projected Benefit 23 Memo Record $325,000 20,000 26,000 - 15,000 43,500 H Plan Obligation Assets $205,000 8 18,000 41,000 15,000 $150,500 Cr. $399,500 Cr. $249,000 Dr.