Veldre Company provides the following information about its defined benefit pens
ID: 2416240 • Letter: V
Question
Veldre Company provides the following information about its defined benefit pension plan for the year 2014.
Service cost $97,700
Contribution to the plan 112,700
Prior service cost amortization 12,800
Actual and expected return on plan assets 64,400
Benefits paid 47,200
Plan assets at January 1, 2014 640,800
Projected benefit obligation at January 1, 2014 704,600
Accumulated OCI (PSC) at January 1, 2014 156,300
Interest/discount (settlement) rate 9 %
Prepare a pension worksheet inserting January 1, 2014, balances, showing December 31, 2014.
VELDRE COMPANY
Pension Worksheet—2014
General Journal Entries
Memo Record
Items
Annual
Pension Expense
Cash
OCI
Prior Service Cost
Pension Asset/
Liability
Projected Benefit
Obligation
Plan
Assets
Balance, January 1, 2014
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Service cost
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Interest cost
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Actual return
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Amortization of PSC
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Contributions
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Benefits
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Journal entry for 2014
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Accumulated OCI, Dec. 31, 2013
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Balance, Dec. 31, 2014
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Prepare the journal entry recording pension expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Explanation / Answer
Pension worksheet for Veldre Company Service cost $ 97,700.00 Interest cost ( 704,600 * 9%) $ 63,414.00 Expected return on plan assets $ (64,400.00) Prior service cost amortization $ 12,800.00 Pension expenses for 2014 $ 109,514.00 For other part of the question, pls. post it separately.
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