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Flounder Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit...
Flounder Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2017.
January 1, 2017
December 31, 2017
Projected benefit obligation
$1,517,000
$1,545,000
Market-related and fair value of plan assets
784,000
1,107,400
Accumulated benefit obligation
1,568,000
1,689,300
Accumulated OCI (G/L)—Net gain
0
(201,700)
The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $121,300. The company's actual funding (contributions) of the plan in 2017 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,213,000 on January 1, 2017. Assume no benefits paid in 2017.
Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)
Components of Pension Expense
$
Show List of Accounts
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(To record pension expense and employer's contribution)
Show List of Accounts
Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Flounder Company for the year 2017.
Flounder Company
Income Statement (Partial)
$
Flounder Company
Comprehensive Income Statement
$XXXX
$
$XXXX
Flounder Company
Balance Sheet (Partial)
$
$
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