Question

Exercise 20-15 Pina Company provides the following selected information related to its defined benefit pension plan for 2017 Pension asset/liability (January 1) Accumulated benefit obligation (December 31) Actual and expected return on plan assets Contributions (funding) in 2017 Fair value of plan assets (December 31) Settlement rate Projected benefit obligation (January 1) Service cost $26,400 Cr 396,400 9,900 149,400 799,700 10% 706,100 79,970 Compute pension expense. Pension expense for 2017 16500 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017. Preparation of a pension worksheet is not required. Benefits paid in 2017 were $39,300 (Credit account titles are automatically indented when amount is entered. Do not indent manvally. Il no entry is required, select No Entry" for the account eitles and enter 0 for the amounts.) Account Titles and Explanaticn Credit amounts that would be reported in the company's income statement and balance sheet for 2017 Pina Company (Partial) Expenses Pension Expense Indicate the pension-related amounts that would be reported in the company's income statement and balance sheet for 201:7 Pina Company Income Statement (Partial) For the Year Ended December 31, 2017 Expenses Pension Expense Pina Company Balance Sheet (Partial) December 31, 2017 Liabilities Pension Liability Click if you would like to Show Work for this question: Open Show Work

Answer 1

10 Ques 1 11 Service cost 12 Interest cost ($706,100 x 10% 13 Expected return on plan assets 14 Pension expense for 2014 15 16 Ques 2 17 18 Account Titles and Explanation 19 Pension Expense 20 Pension Asset/Liabilit 21 Cash $ 79,970.00 $ 70,610.00 S (9,900.00) $140,680.00 Debit Credit $140,680 $8,720 $149,400 23 Ques 3 24 25 26 27 Expenses 28 Pension Expense 29 30 31 32 33 Long-term Liabilities 34 Pension Liabilit Latoya Company Income Statement (Partial) For the year ended December 31, 2014 $140,680 Latoya Company Balance Sheet (Partial) 31-Dec-14 $17,680

Latoya Company Pension Worksheet General Journal Entries Memo Record Entries Annual Pension Pension Asset/Projected Benefi Plan Cash Liability $26,400 Cr. Obligation $706,100 Cr. $679,700 Dr Expense Assets Balance, Jan. 1, 2014 Service cost Interest cost Actual return Amortization of PSC Contributions Benefits Journal entry for 2014 $140,680 Dr. $149,400 Cr.$8,720 Dr $79,970 Dr 79,970 Cr 70,610 Cr 70,610 Dr 9,900 Cr 9,900 Dr $149,400 Cr 149,400 Dr 39,300 Cr 39,300 Dr Balance, Dec. 31, 2014 $17,680 Cr. $81 17,380 Cr.$799,700 Dr