NC co. has a non contributory benefit pension plan for its employees. The data available at year-end are as follows:

Balance Jan 1. 2021

PBO 95,000 Cr

Plan Assets 100,000 Dr

Accumulated OCI- PSC 12,500 Dr

Accumulated OCI-Pension Gain/loss 25,000 Dr

Activity 2021

Service cost 12,000

Actuarial loss on PBO (determined 12/31/21) 4,000

Prior service cost amortization 1,250

Actual Return on plan assets 6,000

Pension benefits paid 1,000

Contribution to pension fund 15,000

Other 2021

Expected return on plan assets 7%

discount rate 9%

average remaining service period 10yr

Required:

1. Prepare a worksheet to summarize the pension data at the end of 2021

2. Assume that NC Co. uses the corridor approach in amortizing any pension

Prepare the journal entry for the pension expense

3. Calculate the ending balances for the following accounts: 

PBO, Plan Assets, Accumulated OCI-PSC, Accumulated OCI, Gain/loss

Answer rating: 100% (QA)

1 Worksheet to Summarize Pension Data at the End of 2021 Account Jan 1 2021 Activity 2021 Dec 31 202... View the full answer