Question

Question Shamrock Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2017. December 31, 2017 January 1, 2017 $1,491,000 $1,517,000 Projected benefit obligation Market-related and fair value of plan assets Accumulated benefit obligation 804,000 1,138,400 1,587,000 1,704,700 Accumulated OCI (G/L)-Net gain (199,100 ) The service cost component of pension expense for employee services rendered in the current year amounted to $76,000 and the amortization of prior service cost was $117,700. The company's actual funding (contributions) of the plan in 2017 amounted to $254,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,177,000 on January 1, 2017. Assume no benefits paid in 2017. Determine the amounts of the components (45).) pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. Components of Pension Expense SHOW LIST OF ACCOUNTS Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

Answer 1

	Components of Pension Expense
	Current service cost	$76,000	(Given in question)
	Past service Cost	$117,700	(Given in question)
	Interest Cost	$149,100	(1,491,000*10%)
	Expected Income from plan assets	-$80,400	(804,000*10%)
	Pension expense	$262,400
	Journal Entry
	Account titles and explanation	Debit	Credit
	Pension expense	$262,400
	Plan asset	$254,000
	OCI- Gain/loss (pension liability)		$144,700
	OCI- Amortization of Prior Service Cost		$117,700
	Cash		$254,000
	(recording of pension expense and contribution)