Jablonski Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan.Check the below image for more details for this problem.Instructions(a) Compute pension expense for Jablonski Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense.(b) Indicate the pension amounts reported in the financial statements. Plan assets (market-related value)Projected benefit obligationPension asset/liabilityPrior service cost$170,000340,000170,000 Cr.100,00039,000OCI–LossAs a result of the operation of the plan during 2017, the actuary provided the following additional data at December 31, 2017.Service cost for 2017Actual return on plan assets in 2017Amortization of prior service costContributions in 2017$45,00027,00020,00085,00051,000Benefits paid retirees in 2017Settlement rate7%Expected return on plan assetsAverage remaining service life of active employees8%10 years

a. The worksheet is as follows: The result of the above table is as follows:

Answered: Plan assets (market-related value)…

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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Jablonski Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan.

Check the below image for more details for this problem.

Instructions
(a) Compute pension expense for Jablonski Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense.
(b) Indicate the pension amounts reported in the financial statements.

Plan assets (market-related value)
Projected benefit obligation
Pension asset/liability
Prior service cost
$170,000
340,000
170,000 Cr.
100,000
39,000
OCI–Loss
As a result of the operation of the plan during 2017, the actuary provided the following additional data at December 31, 2017.
Service cost for 2017
Actual return on plan assets in 2017
Amortization of prior service cost
Contributions in 2017
$45,000
27,000
20,000
85,000
51,000
Benefits paid retirees in 2017
Settlement rate
7%
Expected return on plan assets
Average remaining service life of active employees
8%
10 years

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