P20-3 (LO1,2,3,4,5) (Pension Expense, Journal Entries, Amortization of Loss) Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2017, the company's actuary provided the following information. Accumulated other comprehensive loss (PSC) Pension plan assets (fair value and market-related asset value) Accumulated benefit obligation Projected benefit obligation $150,000 260,000 380,000 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2017, the actuary calculated that the present value of future benefits earned for employee ser- vices rendered in the current year amounted to $52,000; the projected benefit obligation was $490,000; fair value of pension assets was $276,000; the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,000. The company's current year's con- tribution to the pension plan amounted to $65,000. No benefits were paid during the year.
P20-3 (LO1,2,3,4,5) (Pension Expense, Journal Entries, Amortization of Loss) Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2017, the company's actuary provided the following information. Accumulated other comprehensive loss (PSC) Pension plan assets (fair value and market-related asset value) Accumulated benefit obligation Projected benefit obligation $150,000 260,000 380,000 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2017, the actuary calculated that the present value of future benefits earned for employee ser- vices rendered in the current year amounted to $52,000; the projected benefit obligation was $490,000; fair value of pension assets was $276,000; the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,000. The company's current year's con- tribution to the pension plan amounted to $65,000. No benefits were paid during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Determine the components of pension expense that the company would recognize in 2017. (With only one year involved, you need not prepare a worksheet)
2. Prepare the
Transcribed Image Text:P20-3 (LO1,2,3,4,5) (Pension Expense, Journal Entries, Amortization of Loss) Gottschalk Company sponsors a defined
benefit plan for its 100 employees. On January 1, 2017, the company's actuary provided the following information.
Accumulated other comprehensive loss (PSC)
Pension plan assets (fair value and market-related asset value)
Accumulated benefit obligation
Projected benefit obligation
$150,000
260,000
380,000
The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits
under the plan. On December 31, 2017, the actuary calculated that the present value of future benefits earned for employee ser-
vices rendered in the current year amounted to $52,000; the projected benefit obligation was $490,000; fair value of pension assets
was $276,000; the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate
on the projected benefit obligation were both 10%. The actual return on plan assets is $11,000. The company's current year's con-
tribution to the pension plan amounted to $65,000. No benefits were paid during the year.
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