Question

Stellar Enterprises provides the following information relative to its defined benefit pension plan. $2,720,500 1,975,000 2,269,200 210,100 46,000 451,300 Balances or Values at December 31, 2017 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Accumulated OCI (PSC) Accumulated OCI-Net loss (1/1/17 balance, 0) Pension liability Other pension plan data for 2017: Service cost Prior service cost amortization Actual return on plan assets Expected return on plan assets Interest on January 1, 2017, projected benefit obligation Contributions to plan Benefits paid $93,000 41,700 129,200 175,200 254,200 92,700 138,800 your answer is partially correct. Try again. Prepare the note disclosing the components of pension expense for the year 2017. (Enter amounts that reduce

Answer 1

Hi

Let me know in case you face any issue:

Answers are highlighted in yellow Solution: Particulars Amount a) Service Cost Interest Expense Expected return on plan assets $93,000 254200 -175200 $ 41,700 Prior service cost amortization Pension Expense 213700 Particulars Amount b) Prior service cost amortization Actuarial loss (175200-129200) Other Comprehensive loss $ 41,700 $ -46,000 $ 4,300 Particulars Amount Net Income Less: Other comprehensive loss Comprehensive income $35,100 $ -4,300 30,800 Particulars Amount c) Accumulated OCI (PSC) at December 31, 2017 Accumulated OCI-Net loss during 2017 Accumulated OCI (Loss) at Dec.31, 2017 -210100 $ -46,000 -256100