The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2018: Service cost $1,000,000 Actual return on plan assets 500,000 Annual contribution to the plan 1,840,000 Amortization of prior service cost 250,000 Benefits paid to retirees 120,000 Settlement rate 10% Expected rate of return on plan assets 8% The accumulated benefit obligation at December 31, 2018, amounted to $6,500,000. Instructions (a) Using the above information for Marlin Corporation and the amounts posted on the work sheet, complete the pension work sheet for 2018. Indicate (credit) entries by parentheses. Calculated amounts should be supported. Marlin Corporation Pension Work Sheet - 2018 General Journal Entries Memo Entries Annual Pension Expense Cash Prior Service Cost OCI Gain/Loss Pension Asset/Liab Projected Benefit Obligation Plan Assets Bal, 12/31/17 125,000 2,500,000 cr 8,000,000 cr 5,500,000 dr
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2018:
Service cost $1,000,000
Actual return on plan assets 500,000
Annual contribution to the plan 1,840,000
Amortization of prior service cost 250,000
Benefits paid to retirees 120,000
Settlement rate 10%
Expected
The accumulated benefit obligation at December 31, 2018, amounted to $6,500,000.
Instructions
(a) Using the above information for Marlin Corporation and the amounts posted on the work sheet, complete the pension work sheet for 2018. Indicate (credit) entries by parentheses. Calculated amounts should be supported.
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Marlin Corporation Pension Work Sheet - 2018 |
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General |
Memo Entries |
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Annual Pension Expense |
Cash |
Prior Service Cost |
OCI Gain/Loss |
Pension Asset/Liab |
Projected Benefit Obligation |
Plan Assets
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Bal, 12/31/17 |
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125,000 |
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2,500,000 cr |
8,000,000 cr |
5,500,000 dr
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