Veldre Company provides the following information about its defined benefit pens
ID: 2569233 • Letter: V
Question
Veldre Company provides the following information about its defined benefit pension plan for the year 2014.
Service cost $98,100
Contribution to the plan 114,400
Prior service cost amortization 13,400
Actual and expected return on plan assets 67,900
Benefits paid 44,500
Plan assets at January 1, 2014 644,800
Projected benefit obligation at January 1, 2014 708,300
Accumulated OCI (PSC) at January 1, 2014 154,400
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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$
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Accumulated OCI, Dec. 31, 2013
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Balance, Dec. 31, 2014
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$
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$
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$
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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:
Entry:
Particulars Defined benefit obligation Plan asset Net Asset /(Liability) Pension expense /(income)- Income statement Accummulated other comprehensive income 2016 Opening balances 708,300 644,800 -63,500 154400 Annual service cost 98,100 -98,100 98,100 Prior service cost amortisation 13,400 -13400 Return on plan assets 67,900 67,900 -67,900 Benefits paid -44,500 -44,500 Annual funding 114,400 114,400 2016 Balances 806,400 782,600 -23,800 43,600 141,000Related Questions
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