On January 1, 2025, Blossom Company has the following defined benefit pension plan balances.Projected benefit obligation$4,454,000Fair value of plan assets4,140,000The interest (settlement) rate applicable to the plan is 10%. On January 1, 2026, the company amends its pension agreement so thatprior service costs of $509,000 are created. Other data related to the pension plan are as follows.20252026Service cost$149,000$177,000Prior service cost amortization-0-92,000Contributions (funding) to the plan237,000283,000Benefits paid196,000274,000Actual return on plan assets248,400260,000Expected rate of return on assets6%8%(a)Prepare a pension worksheet for the pension plan for 2025 and 2026. (Enter all amounts as positive.)BLOSSOM COMPANYPension Worksheet-2025 and 2026General Journal EntriesOCI-PriorService CostOCI-Gain/PelLoss Cr.$>>10$509000Dr.>>>>>Cr.>>>>>>Cr.92000Cr.$>>>>>>>417000Dr.94352>Dr. ▾$>>>94352Dr. ▼>>10$

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Prepare a pension worksheet for the pension plan for 2025 and 2026. (Enter all amounts as positive.)

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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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

Cr.
$
>
>
10
$
509000
Dr.
>
>
>
>
>
Cr.
>
>
>
>
>
>
Cr.
92000
Cr.
$
>
>
>
>
>
>
>
417000
Dr.
94352
>
Dr. ▾
$
>
>
>
94352
Dr. ▼
>
>
10
$

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