Crane 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. The actuarial present value of future benefits earned by employees for services rendered in 2025 amounted to $56,000. 2. The company's funding policy requires a contribution to the pension trustee amounting to $145,023 for 2025. 3. 4. As of January 1, 2025, the company had a projected benefit obligation of $894,700, an accumulated benefit obligation of $803,700, and a debit balance of $397,300 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $595,600 at the beginning of the year. The actual and expected return on plan assets was $53,900. The settlement rate was 9%. No gains or losses occurred in 2025 and no benefits were paid. Amortization of prior service cost was $49,500 in 2025. Amortization of net gain or loss was not required in 2025. (a) 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 $ 56000 Interest on Projected Benefit Obligation Amortization of Prior Service Cost Expected Return on Plan Assets Pension Expense eTextbook and Media 80523 49500 -53900 $ 132123 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 Pension Expense Pension Asset/Liability Cash Debit 132123 Credit
Crane 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. The actuarial present value of future benefits earned by employees for services rendered in 2025 amounted to $56,000. 2. The company's funding policy requires a contribution to the pension trustee amounting to $145,023 for 2025. 3. 4. As of January 1, 2025, the company had a projected benefit obligation of $894,700, an accumulated benefit obligation of $803,700, and a debit balance of $397,300 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $595,600 at the beginning of the year. The actual and expected return on plan assets was $53,900. The settlement rate was 9%. No gains or losses occurred in 2025 and no benefits were paid. Amortization of prior service cost was $49,500 in 2025. Amortization of net gain or loss was not required in 2025. (a) 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 $ 56000 Interest on Projected Benefit Obligation Amortization of Prior Service Cost Expected Return on Plan Assets Pension Expense eTextbook and Media 80523 49500 -53900 $ 132123 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 Pension Expense Pension Asset/Liability Cash Debit 132123 Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
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Transcribed Image Text:Crane 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.
The actuarial present value of future benefits earned by employees for services rendered in 2025 amounted to $56,000.
2.
The company's funding policy requires a contribution to the pension trustee amounting to $145,023 for 2025.
3.
4.
As of January 1, 2025, the company had a projected benefit obligation of $894,700, an accumulated benefit obligation of
$803,700, and a debit balance of $397,300 in accumulated OCI (PSC). The fair value of pension plan assets amounted to
$595,600 at the beginning of the year. The actual and expected return on plan assets was $53,900. The settlement rate was
9%. No gains or losses occurred in 2025 and no benefits were paid.
Amortization of prior service cost was $49,500 in 2025. Amortization of net gain or loss was not required in 2025.
(a)
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
$
56000
Interest on Projected Benefit Obligation
Amortization of Prior Service Cost
Expected Return on Plan Assets
Pension Expense
eTextbook and Media
80523
49500
-53900
$
132123
Transcribed Image Text: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
Pension Expense
Pension Asset/Liability
Cash
Debit
132123
Credit
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