Oriole 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, 2025. January 1, 2025 December 31, 2025 Projected benefit obligation $1,490,000 $1,517,000 Market-related and fair value of plan assets 793,000 1,124,300 Accumulated benefit obligation 1,614,000 1,736,100 Accumulated OCI (G/L)-Net gain 0 (199,000) 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 $122,100. The company's actual funding (contributions) of the plan in 2025 amounted to $252,000. 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 $1,221,000 on January 1, 2025. Assume no benefits paid in 2025. 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).) Components of Pension Expense Service Cost SA $ 77000 Interest on Projected Benefit Obligation ▾ Expected Return on Plan Assets Amortization of Prior Service Cost Pension Expense LA 149000 (79300) 122100 268800 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan 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 Other Comprehensive Income (PSC) Cash Debit 268800 Credit 122100 252000
Oriole 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, 2025. January 1, 2025 December 31, 2025 Projected benefit obligation $1,490,000 $1,517,000 Market-related and fair value of plan assets 793,000 1,124,300 Accumulated benefit obligation 1,614,000 1,736,100 Accumulated OCI (G/L)-Net gain 0 (199,000) 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 $122,100. The company's actual funding (contributions) of the plan in 2025 amounted to $252,000. 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 $1,221,000 on January 1, 2025. Assume no benefits paid in 2025. 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).) Components of Pension Expense Service Cost SA $ 77000 Interest on Projected Benefit Obligation ▾ Expected Return on Plan Assets Amortization of Prior Service Cost Pension Expense LA 149000 (79300) 122100 268800 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan 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 Other Comprehensive Income (PSC) Cash Debit 268800 Credit 122100 252000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Oriole 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, 2025.
January 1, 2025
December 31, 2025
Projected benefit obligation
$1,490,000
$1,517,000
Market-related and fair value of plan assets
793,000
1,124,300
Accumulated benefit obligation
1,614,000
1,736,100
Accumulated OCI (G/L)-Net gain
0
(199,000)
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 $122,100. The
company's actual funding (contributions) of the plan in 2025 amounted to $252,000. 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 $1,221,000 on January 1, 2025. Assume no benefits paid in 2025.
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).)
Components of Pension Expense
Service Cost
SA
$
77000
Interest on Projected Benefit Obligation ▾
Expected Return on Plan Assets
Amortization of Prior Service Cost
Pension Expense
LA
149000
(79300)
122100
268800
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan 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
Other Comprehensive Income (PSC)
Cash
Debit
268800
Credit
122100
252000
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