There are 4 accounts for the journal entry. Thanks! Exercise 20-3 Shamrock Compa

Question

There are 4 accounts for the journal entry.

Thanks!

Exercise 20-3 Shamrock Company provides the following information about its defined benefit pension plan for the year 2017 Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2017 Projected benefit obligation at January 1, 2017 Accumulated OCI (PSC) at January 1, 2017 Interest/discount (settlement) rate $83,700 103,000 9,800 63,000 40,100 633,700 699,000 150,500 10% Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017. (Enter all amounts as positive.) SHAMROCK COMPANY Pension 2017 eneral Journal Entries Annual Pension Expense OCI Prior Service Cost Pension Asset/ Liability Projected Benefit Obligation Plan Assets Items Cash Balance, January 1, 2017 Service cost Interest cost

Explanation / Answer

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Items Annual pension expense Cash AOCI-PSC OCI Gain Pension asset/liability Projected benefit obligation Plan assets Amount Dr/cr Amount Dr/cr Amount Dr/cr Amount Dr/cr Amount Dr/cr Amount Dr/cr Amount Dr/cr Balance Jan 1, 2017        1,50,500 Dr Cr           65,300 Cr              6,99,000 Cr        6,33,700 Dr Service cost           88,700 Dr           88,700 Cr                 88,700 Cr Interest cost           69,900 Dr           69,900 Cr                 69,900 Cr PSC amortisation              9,800 Dr        9,800.00 Cr Return on plan assets           63,000 Cr                      -   Cr           63,000 Dr            63,000 Dr OCI Gain amortisation                    -   Cr                      -   Dr New prior service cost                    -   Dr                   -   Dr Cr Loss due to change in acturial assumptions Dr                          -   Cr Contributions Cr                   -   Dr                    -   Dr Benefits paid                 40,100 Dr            40,100 Cr Jounral for 2017        1,05,400 Dr                    -   Cr              9,800 Cr                      -   Cr           95,600 Cr              1,18,500 Cr            22,900 Dr Opening balance Jan 1, 2017        1,50,500 Dr                      -   Cr           65,300 Cr              6,99,000 Cr        6,33,700 Dr Balance Dec 31, 2017        1,40,700 Dr                      -   Cr       1,60,900 Cr              8,17,500 Cr        6,56,600 Dr

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