question archive Cullumber Company sponsors a defined benefit pension plan for its employees
Cullumber Company sponsors a defined benefit pension plan for its employees
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Cullumber Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid.
1.The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $55,700.2.The company's funding policy requires a contribution to the pension trustee amounting to $144,323 for 2017.3.As of January 1, 2017, the company had a projected benefit obligation of $894,700, an accumulated benefit obligation of $792,500, and a debit balance of $402,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,400 at the beginning of the year. The actual and expected return on plan assets was $54,300. The settlement rate was 9%. No gains or losses occurred in 2017 and no benefits were paid.4.Amortization of prior service cost was $49,800 in 2017. Amortization of net gain or loss was not required 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
Actual Return on Plan Assets
Amortization of Prior Service Cost
Benefits Paid
Contributions to Plan
Expected Return on Plan Assets
Interest on Projected Benefit Obligation
Service Cost
Pension Expense
$
Actual Return on Plan Assets
Amortization of Prior Service Cost
Benefits Paid
Contributions to Plan
Expected Return on Plan Assets
Interest on Projected Benefit Obligation
Service Cost
Pension Expense
Actual Return on Plan Assets
Amortization of Prior Service Cost
Benefits Paid
Contributions to Plan
Expected Return on Plan Assets
Interest on Projected Benefit Obligation
Service Cost
Pension Expense
Actual Return on Plan Assets
Amortization of Prior Service Cost
Benefits Paid
Contributions to Plan
Expected Return on Plan Assets
Interest on Projected Benefit Obligation
Service Cost
Pension Expense
Actual Return on Plan Assets
Amortization of Prior Service Cost
Benefits Paid
Contributions to Plan
Expected Return on Plan Assets
Interest on Projected Benefit Obligation
Service Cost
Pension Expense
$
SHOW LIST OF ACCOUNTS
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Prepare the journal entry or entries to record pension expense and the employer's contribution to the pension trustee 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
SHOW LIST OF ACCOUNTS
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Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Cullumber Company for the year 2017.
Cullumber Company
Income Statement (Partial)
December 31, 2017
For the Year Ended December 31, 2017
For the Quarter Ended December 31, 2017
Dividends
Expenses
Net Income / (Loss)
Retained Earnings - January 1, 2017
Retained Earnings - December 31, 2017
Revenues
Total Expenses
Total Revenues
Amortization of PSC
Interest Expense
Pension Expense
Rent Expense
Service Cost
$
Cullumber Company
Comprehensive Income Statement
December 31, 2017
For the Year Ended December 31, 2017
For the Quarter Ended December 31, 2017
Dividends
Expenses
Net Income / (Loss)
Retained Earnings - January 1, 2017
Retained Earnings - December 31, 2017
Revenues
Total Expenses
Total Revenues
$XXXX
Amortization of PSC
Comprehensive Income
Interest Expense
Pension Expense
Rent Expense
Service Cost
Other Comprehensive Income
Amortization of PSC
Comprehensive Income
Interest Expense
Pension Expense
Rent Expense
Service Cost
Other Comprehensive Income
Amortization of PSC
Comprehensive Income
Interest Expense
Pension Expense
Rent Expense
Service Cost
Other Comprehensive Income
$XXXX
Cullumber Company
Balance Sheet (Partial)
December 31, 2017
For the Year Ended December 31, 2017
For the Quarter Ended December 31, 2017
Current Assets
Intangible Assets
Long-term Investments
Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Intangible Assets
Total Long-term Investments
Total Property, Plant and Equipment
Total Stockholders' Equity
Accounts Payable
Accounts Receivable
Accumulated Depreciation
Accumulated Other Comprehensive Income (PSC)
Accumulated Other Comprehensive Loss (PSC)
Common Stock
Pension Liability
Retained Earnings
$
Current Assets
Intangible Assets
Long-term Investments
Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Intangible Assets
Total Long-term Investments
Total Property, Plant and Equipment
Total Stockholders' Equity
Accounts Payable
Accounts Receivable
Accumulated Depreciation
Accumulated Other Comprehensive Income (PSC)
Accumulated Other Comprehensive Loss (PSC)
Common Stock
Pension Liability
Retained Earnings
$
