Pkease Do not Give image format Note .Prepare a partial income statement and balance sheet for the pension expense.*The pension expense on the Income statement is not $133,470. (b)Your Answer Correct Answer (Used)Prepare the journal entry to record pension expense and the employer's contribution to the pension trustee in 2025. (Creditaccount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for theaccount titles and enter O for the amounts. List all debit entries before credit entries.)Account Titles and Explanation(c1)Pension ExpensePension Asset/LiabilityCashOther Comprehensive Income (PSC)Your answer is partially correct.Operating ExpensesPension ExpenseIndicate the amounts that would be reported on the income statement for the year 2025.BLOSSOM COMPANYIncome Statement (Partial)For the Year Ended December 31, 2025Other Income / ExpensesDebitOther Comprehensive Income (PSC)133,47061,200Credit144,77049,900 Blossom Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan forthe year 2025 in which no benefits were paid.1.2.3.4.(a)The actuarial present value of future benefits earned by employees for services rendered in 2025 amounted to $56,300.The company's funding policy requires a contribution to the pension trustee amounting to $144,770 for 2025.As of January 1, 2025, the company had a projected benefit obligation of $903,000, an accumulated benefit obligation of$796,500, and a debit balance of $398,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to$595,000 at the beginning of the year. The actual and expected return on plan assets was $54,000. The settlement rate was9%. No gains or losses occurred in 2025 and no benefits were paid.Amortization of prior service cost was $49,900 in 2025. Amortization of net gain or loss was not required in 2025.Your answer is correct.Determine the amounts of the components of pension expense that should be recognized by the company in 2025. (Enter amountsthat reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)Service CostComponents of Pension ExpenseInterest on Projected Benefit ObligationExpected Return on Plan AssetsAmortization of Prior Service CostPension Expense$5630081270(54000)49900133470

Pension fees are a form of liability to the business. Because this is the obligation of the company…

Answered: Blossom Company sponsors a defined…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pkease Do not Give image format Note .Prepare a partial income statement and balance sheet for the pension expense. *The pension expense on the Income statement is not $133,470.

(b)
Your Answer Correct Answer (Used)
Prepare the journal entry to record pension expense and the employer's contribution to the pension trustee in 2025. (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 O for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
(c1)
Pension Expense
Pension Asset/Liability
Cash
Other Comprehensive Income (PSC)
Your answer is partially correct.
Operating Expenses
Pension Expense
Indicate the amounts that would be reported on the income statement for the year 2025.
BLOSSOM COMPANY
Income Statement (Partial)
For the Year Ended December 31, 2025
Other Income / Expenses
Debit
Other Comprehensive Income (PSC)
133,470
61,200
Credit
144,770
49,900

Blossom Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for
the year 2025 in which no benefits were paid.
1.
2.
3.
4.
(a)
The actuarial present value of future benefits earned by employees for services rendered in 2025 amounted to $56,300.
The company's funding policy requires a contribution to the pension trustee amounting to $144,770 for 2025.
As of January 1, 2025, the company had a projected benefit obligation of $903,000, an accumulated benefit obligation of
$796,500, and a debit balance of $398,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to
$595,000 at the beginning of the year. The actual and expected return on plan assets was $54,000. The settlement rate was
9%. No gains or losses occurred in 2025 and no benefits were paid.
Amortization of prior service cost was $49,900 in 2025. Amortization of net gain or loss was not required in 2025.
Your answer is correct.
Determine the amounts of the components of pension expense that should be recognized by the company in 2025. (Enter amounts
that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)
Service Cost
Components of Pension Expense
Interest on Projected Benefit Obligation
Expected Return on Plan Assets
Amortization of Prior Service Cost
Pension Expense
$
56300
81270
(54000)
49900
133470

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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