1. Compute 2015 pension expense 2. Compute the 12/31/15 project s benefit obligation. 3. Compute the 12/31/16...
Question:
1. Compute 2015 pension expense
2. Compute the 12/31/15 project s benefit obligation.
3. Compute the 12/31/16 plan assets
4. Prepare journal entry to record pension expense 12/31/15
5. Amount to be reported as pension Assets/Liability 12/31/15
6. Compute the total balance in Accum. Other compensation income 12/31/15 an incident how it affects 12/31/15 balance sheet.
| 12/31/14 | 12/31/15 |
Service Cost | 200,000 |
|
Actual return on plan assets | 105.000 |
|
Annual contribution to the plan | 400,000 |
|
Benefits paid to retirees | 24,000 |
|
Pension Asset/Liability (credit 12/31/15 | 400,000 | ? |
Project benefit obligation | 1500,000 | ? |
Plan asset | 1,100,000 | ? |
Unrecognized prior service cost | 250,000 | 208,000 |
Unrecognized net gain or loss | 0 | ? |
Amortization of unrecognized PSC | 42,000 |
|
Accumulated benefit obligation | 1,340,000 | 1,700,000 |
Settlement rate | 10% |
|
Expected rate of return on plan assets | 8% |
|
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta