This is the Information for Smith's Corporation: defined benefit pension plan for the year ended December 31,
Question:
This is the Information for Smith's Corporation: defined benefit pension plan for the year ended December 31, 2015:
• Service cost for 2019 $ 280,000
• Market-related value of pension assets at January 1, 2019 2,650,000
• Fair value of pension assets at December 31, 2019 2,500,000
• Accumulated other comprehensive income: prior service cost, 12/31/18 150,000
• Accumulated other comprehensive income: unexpected loss at
December 31, 2018 310,000
• Pensions paid during 2019 285,000
• Employer contribution made to the pension trust in December, 2019 200,000
• Decrease in the projected benefit obligation due to changes in actuarial
assumptions as of December 31, 2019 150,000
- Pension Asset/ Liability 1/1/19 300,000
- PBO 1/1/19 2,700,000
- Pension Assets 1/1/19 2,400,000
• Expected return on pension assets 6%
• Discount rate 5%
• Average remaining service period of current employees as of January 1, 2019
(to be used for all amortization situations) 10 years
Required:
- Complete the pension workpaper
Find
Pension Expense
Expected Return
Actual Return
Ending Balance in Pension Asset/ Liabilities
Ending Balance in Prior Service Cost
Ending Balance in Unexpected Gains/ Losses
Ending Balance in PBO
Ending Balance in Pension Asset
Complete ALL Journal entries
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik