Prepare a pension worksheet for the pension plan for 2025 and 2026. (Enter all amounts as positive.)
Prepare a pension worksheet for the pension plan for 2025 and 2026. (Enter all amounts as positive.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On January 1, 2025, Blossom Company has the following defined benefit pension plan balances.
Projected benefit obligation
$4,454,000
Fair value of plan assets
4,140,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2026, the company amends its pension agreement so that
prior service costs of $509,000 are created. Other data related to the pension plan are as follows.
2025
2026
Service cost
$149,000
$177,000
Prior service cost amortization
-0-
92,000
Contributions (funding) to the plan
237,000
283,000
Benefits paid
196,000
274,000
Actual return on plan assets
248,400
260,000
Expected rate of return on assets
6%
8%
(a)
Prepare a pension worksheet for the pension plan for 2025 and 2026. (Enter all amounts as positive.)
BLOSSOM COMPANY
Pension Worksheet-2025 and 2026
General Journal Entries
OCI-Prior
Service Cost
OCI-Gain/
Pel
Loss](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc115c4e-9568-40b2-b2c4-d0fc491a212c%2Fe3b87786-ccd0-40bb-a7c2-1257ea67aeba%2Fsv0e83l_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2025, Blossom Company has the following defined benefit pension plan balances.
Projected benefit obligation
$4,454,000
Fair value of plan assets
4,140,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2026, the company amends its pension agreement so that
prior service costs of $509,000 are created. Other data related to the pension plan are as follows.
2025
2026
Service cost
$149,000
$177,000
Prior service cost amortization
-0-
92,000
Contributions (funding) to the plan
237,000
283,000
Benefits paid
196,000
274,000
Actual return on plan assets
248,400
260,000
Expected rate of return on assets
6%
8%
(a)
Prepare a pension worksheet for the pension plan for 2025 and 2026. (Enter all amounts as positive.)
BLOSSOM COMPANY
Pension Worksheet-2025 and 2026
General Journal Entries
OCI-Prior
Service Cost
OCI-Gain/
Pel
Loss
![Cr.
$
>
>
10
$
509000
Dr.
>
>
>
>
>
Cr.
>
>
>
>
>
>
Cr.
92000
Cr.
$
>
>
>
>
>
>
>
417000
Dr.
94352
>
Dr. ▾
$
>
>
>
94352
Dr. ▼
>
>
10
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc115c4e-9568-40b2-b2c4-d0fc491a212c%2Fe3b87786-ccd0-40bb-a7c2-1257ea67aeba%2F6ytmg22_processed.png&w=3840&q=75)
Transcribed Image Text:Cr.
$
>
>
10
$
509000
Dr.
>
>
>
>
>
Cr.
>
>
>
>
>
>
Cr.
92000
Cr.
$
>
>
>
>
>
>
>
417000
Dr.
94352
>
Dr. ▾
$
>
>
>
94352
Dr. ▼
>
>
10
$
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education