(Pension Worksheet—Missing Amounts) Kramer Co. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing the worksheet and completing the accounting tasks related to the pension plan for 2017.Check the below image for pension worksheet.Instructions(a) Determine the missing amounts in the 2017 pension worksheet, indicating whether the amounts are debits or credits.(b) Prepare the journal entry to record 2017 pension expense for Kramer Co.(c) Determine the following for Kramer for 2017: (1) settlement rate used to measure the interest on the liability and (2) expected return on plan assets Pension Worksheet–Kramer Co.xlsHomeInsertPage Layout Formulas DataReview ViewP18fxABCDEFGHGeneral Journal EntriesMemo RecordAnnualPensionPensionProjectedBenefitOC-PriorService Cost4OC-Asset/5ItemsExpenseCashGain/LossLiability Obligation Plan Assets6 Balance, Jan. 1, 2017Service cost120,000325,000205,000 Dr.(1)20,000Interest cost(2)26,0009 Actual return(3)18,000 Dr.10 Unexpected loss11 Amortization of PSC2,500(4)(5)35,00012 Contributions41,00041,000 Dr.13 Benefits15,00015,000 Cr.14 Increase in PBO(6)43,50015 Journal entry for 201716 Accumulated OCI, Dec. 31, 2016(7)(8)(9)80,00045,000(10)(11)17 Balance, Dec. 31, 201746,000150,500 Cr. 399,500 Cr. 249,000 Dr.18

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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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(Pension Worksheet—Missing Amounts) Kramer Co. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing the worksheet and completing the accounting tasks related to the pension plan for 2017.

Check the below image for pension worksheet.

Instructions
(a) Determine the missing amounts in the 2017 pension worksheet, indicating whether the amounts are debits or credits.
(b) Prepare the journal entry to record 2017 pension expense for Kramer Co.
(c) Determine the following for Kramer for 2017: (1) settlement rate used to measure the interest on the liability and (2) expected return on plan assets

Pension Worksheet–Kramer Co.xls
Home
Insert
Page Layout Formulas Data
Review View
P18
fx
A
B
C
D
E
F
G
H
General Journal Entries
Memo Record
Annual
Pension
Pension
Projected
Benefit
OC-Prior
Service Cost
4
OC-
Asset/
5
Items
Expense
Cash
Gain/Loss
Liability Obligation Plan Assets
6 Balance, Jan. 1, 2017
Service cost
120,000
325,000
205,000 Dr.
(1)
20,000
Interest cost
(2)
26,000
9 Actual return
(3)
18,000 Dr.
10 Unexpected loss
11 Amortization of PSC
2,500
(4)
(5)
35,000
12 Contributions
41,000
41,000 Dr.
13 Benefits
15,000
15,000 Cr.
14 Increase in PBO
(6)
43,500
15 Journal entry for 2017
16 Accumulated OCI, Dec. 31, 2016
(7)
(8)
(9)
80,000
45,000
(10)
(11)
17 Balance, Dec. 31, 2017
46,000
150,500 Cr. 399,500 Cr. 249,000 Dr.
18

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