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. Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2025. Indicate the pension-related amounts that would be reported on the comprehensive income statement for Oriole Company for the year 2025. Indicate the pension-related amounts that would be reported on the income statement for Oriole Company for the year 2025. Indicate the pension-related amounts that would be reported on the balance sheet for Oriole Company for the year 2025.
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.
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January 1, 2025 |
December 31, 2025 |
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|
Projected benefit obligation |
$1,490,000 |
$1,517,000 |
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|
Market-related and fair value of plan assets |
793,000 |
1,124,300 |
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|
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. Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2025.
Indicate the pension-related amounts that would be reported on the comprehensive income statement for Oriole Company for the year 2025.
Indicate the pension-related amounts that would be reported on the income statement for Oriole Company for the year 2025.
Indicate the pension-related amounts that would be reported on the balance sheet for Oriole Company for the year 2025.
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