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.)

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

 

     

 

Place New Order
It's Free, Fast & Safe

"Looking for a Similar Assignment? Order now and Get a Discount!