a$)$

V Your answer is correct.

Determine the amounts of the components of pension expense that should be recognized by the co

that reduce pension expense with either a negative sign preceding the number e$.$g$.-45$ or parenthesis e$.$g$.($

Components of Pension Expense

Interest on Projected Benefit Obligation

Expected Return on Plan Assets

Amortization of Prior Service Cost

$

$ $($b$)$

Your answer is correct.

Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in $2025.($Credit

titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the

titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Pension Expense

Pension Asset$/$Liability

Cash

Other Comprehensive Income $($PSC$)$

Other Comprehensive Income $($G$/$L$)$ V Your answer is correct.

Indicate the pension$-$related amounts that would be reported on the income statement for Pharoah Company for the ye$.$

PHAROAH COMPANY

Income Statement $($Partial$)$

For the Year Ended December $31,2025$

$

$ Indicate the pension$-$related amounts that would be reported on the comprehensive income statement for Pharoah Company for

the year $2025.$

PHAROAH COMPANY

Comprehensive Income Statement

For the Year Ended December $31,2025$

Net Income $/($Loss$)$

Other Comprehensive Income $($Loss$)$

Liability Gain $($Loss$)$

$

Prior Service Cost AmortizationYour answer is partially correct.

Indicate the pension$-$related amounts that would be reported on the balance sheet for Pharoah Company for the year

PHAROAH COMPANY

Balance Sheet $($Partial$)$

Pension Asset$/$Liability

$

Accumulated Other Comprehensive Income $($PSC$)$

$

Accumulated Other Comprehensive Income $($G$/$L$)$E$19\mathrm{.}12($LO $1,2,3,4,5)($Pension Expense, Journal Entries, Statement Presentation$)$ Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the company$$s defined benefit pension plan for the year ended December $31,2025.$

January $1,2025$ December $31,2025$

Projected benefit obligation $$1,497,000$ $$1,525,000$

Market$-$related and fair value of plan assets $806,0001,139,600$

Accumulated benefit obligation $1,573,0001,693,800$

Accumulated OCI $($G$/$L$)$Net gain $0(199,700)$

The service cost component of pension expense for employee services rendered in the current year amounted to $$78,000$ and the amortization of prior service cost was $$120,800.$ The company$$s actual funding $($contributions$)$ of the plan in $2025$ amounted to $$253,000.$ The expected return on plan assets and the actual rate were both $10\%$; the interest$/$discount $($settlement$)$ rate was $10\%.$ Accumulated other comprehensive income $($PSC$)$ had a balance of $$1,208,000$ on January $1,2025.$ Assume no benefits paid in $2025.$

Instructions

Determine the amounts of the components of pension expense that should be recognized by the company in $2025.$

Prepare the journal entry to record pension expense and the employer$$s contribution to the pension plan in $2025.$

Indicate the pension related amounts that would be reported on the comprehensive income statement

Indicate the pension$-$related amounts that would be reported on the income statement and the balance sheet for Ferreri Company for the year $2025.$