January 1, December 31, 2017 2017 Projected benefit obligation Market-related and fair value of plan assets Accumulated benefit obligation Accumulated OCI (G/L)–Net gain $1,500,000 800,000 $1,527,000 1,130,000 1,720,000 1,600,000 -0- (200,000)
(Pension Expense, Journal Entries, Statement Presentation) Ferreri 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.
Check below image for information.
The service cost component of pension expense for employee services rendered in the current year amounted to $77,000 and the amortization of prior service cost was $120,000. The company’s actual funding (contributions) of the plan in 2017 amounted to $250,000. 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 $1,200,000 on January 1, 2017. Assume no benefits paid in 2017.
Instructions
(a) Determine the amounts of the components of pension expense that should be recognized by the company in 2017.
(b) Prepare the
(c) Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Ferreri Company for the year 2017.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
