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Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. $93,500 As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Plan assets Projected benefit obligation $460,000 606,500 Pension asset/liability 146,500 Accumulated OCI (PSC) 104,200 Dr. Service cost Settlement rate, 10% Actual return on plan assets 54,600 Amortization of prior service cost 18,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,600 Contributions 100,500 Benefits paid retirees 84,300 Items Balance, Jan. 1, 2025 Service cost Interest cost Actual return Unexpected gain Annual Pension Expense Amortization of PSC Liability increase Contributions > Cash OCI- Gain/ Loss $ General Journal Entries OCI-Prior Service Cost BLOSSOM CORP. Pension Worksheet +A > > > > > > > > Journal entry for 2025 $ tA Benefits +A > > > > 1A $ > > > > > > > > +A $ LA Pension Asset/ Liability > > > > > > > > > ŁA $ > > Projected Benefit Obligation Memo Record Plan Assets $ +A > > LA LA > > > > > く +A $ > > LA $

Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. $93,500 As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Plan assets Projected benefit obligation $460,000 606,500 Pension asset/liability 146,500 Accumulated OCI (PSC) 104,200 Dr. Service cost Settlement rate, 10% Actual return on plan assets 54,600 Amortization of prior service cost 18,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,600 Contributions 100,500 Benefits paid retirees 84,300 Items Balance, Jan. 1, 2025 Service cost Interest cost Actual return Unexpected gain Annual Pension Expense Amortization of PSC Liability increase Contributions > Cash OCI- Gain/ Loss $ General Journal Entries OCI-Prior Service Cost BLOSSOM CORP. Pension Worksheet +A > > > > > > > > Journal entry for 2025 $ tA Benefits +A > > > > 1A $ > > > > > > > > +A $ LA Pension Asset/ Liability > > > > > > > > > ŁA $ > > Projected Benefit Obligation Memo Record Plan Assets $ +A > > LA LA > > > > > く +A $ > > LA $

FINANCIAL ACCOUNTING
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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Blossom Corp. sponsors a defined benefit pension plan for its employees. On January I, 2025, the following balances relate to this

plan.

Plan assets: $460,000

Projected benefit obligation: $606,500

Pension asset/liability: $146,500

Accumulated OCI (PSC): 104,200 Dr.

As a result of the operation of the plan during 2025, the following additional data are provided by the actuary.

Service cost: $93,500

Settlement rate, 10%

Actual return on plan assets: $54,600

Amortization of prior service cost: $18,100

Expected return on plan assets: $51,600

Unexpected loss from change in projected benefit obligation,

due to change in actuarial predictions: $76,600

Contributions: $100,500

Benefits paid retirees: $84,300

  • Using the data above, compute pension expense for Blossom for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive.)
Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. $93,500 As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Plan assets Projected benefit obligation $460,000 606,500 Pension asset/liability 146,500 Accumulated OCI (PSC) 104,200 Dr. Service cost Settlement rate, 10% Actual return on plan assets 54,600 Amortization of prior service cost 18,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,600 Contributions 100,500 Benefits paid retirees 84,300 Items Balance, Jan. 1, 2025 Service cost Interest cost Actual return Unexpected gain Annual Pension Expense Amortization of PSC Liability increase Contributions > Cash OCI- Gain/ Loss $ General Journal Entries OCI-Prior Service Cost BLOSSOM CORP. Pension Worksheet +A > > > > > > > > Journal entry for 2025 $ tA Benefits +A > > > > 1A $ > > > > > > > > +A $ LA Pension Asset/ Liability > > > > > > > > > ŁA $ > > Projected Benefit Obligation Memo Record Plan Assets $ +A > > LA LA > > > > > く +A $ > > LA $
Transcribed Image Text:Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. $93,500 As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Plan assets Projected benefit obligation $460,000 606,500 Pension asset/liability 146,500 Accumulated OCI (PSC) 104,200 Dr. Service cost Settlement rate, 10% Actual return on plan assets 54,600 Amortization of prior service cost 18,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,600 Contributions 100,500 Benefits paid retirees 84,300 Items Balance, Jan. 1, 2025 Service cost Interest cost Actual return Unexpected gain Annual Pension Expense Amortization of PSC Liability increase Contributions > Cash OCI- Gain/ Loss $ General Journal Entries OCI-Prior Service Cost BLOSSOM CORP. Pension Worksheet +A > > > > > > > > Journal entry for 2025 $ tA Benefits +A > > > > 1A $ > > > > > > > > +A $ LA Pension Asset/ Liability > > > > > > > > > ŁA $ > > Projected Benefit Obligation Memo Record Plan Assets $ +A > > LA LA > > > > > く +A $ > > LA $
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