Question
Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year:
PBO: Balance, Jan. 1$241,000 Service cost 42,000 Interest cost (5% discount rate) 12,050 Gain from changes in actuarial assumptions in 2016 (5,100) Benefits paid to retirees (21,000) Balance, Dec. 31$268,950
Calculate the 2016 pension expense. (Amounts to be deducted should be indicated with a minus sign.)
Prepare the 2016 journal entries to record pension expense and funding. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
Prepare any journal entries to record any 2016 gains or losses. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
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Plan assets: |
|
|
|
Balance, Jan.1 |
$ |
251,000 |
|
Actual return (expected return was $22,600) |
|
20,000 |
|
Contributions |
|
36,000 |
|
Benefits paid |
|
(21,000) |
|
|
|
|
|
Balance, Dec. 31 |
$ |
286,000 |
|
|
|
|
|
ABO, Dec. 31 |
$ |
246,100 |
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|
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