Sheridan 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 $55,900.
2 The company’s funding policy requires a contribution to the pension trustee amounting to
. $154,300 for 2017.
3 As of January 1, 2017, the company had a projected benefit obligation of $898,000, an
. accumulated benefit obligation of $796,600, and a debit balance of $398,300 in accumulated
OCI (PSC). The fair value of pension plan assets amounted to $600,600 at the beginning of the
year. The actual and expected return on plan assets was $54,300. The settlement rate was
10%. No gains or losses occurred in 2017 and no benefits were paid.
4 Amortization of prior service cost was $50,200 in 2017. Amortization of net gain or loss was
. not required in 2017. (a) Your answer is correct.
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
Service Cost $
55900 Interest on Projected Benefit Obligation 89800 Amortization of Prior Service Cost 50200 Expected Return on Plan Assets (54300) Pension Expense Click if you would like to Show Work for this
question: SHOW LIST OF ACCOUNTS
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LINK TO TEXT $
141600 Open Show Work LINK TO TEXT
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LINK TO TEXT Attempts: 1 of 3 used (b) Your answer is partially correct. Try again.
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
Pension Expen Debit Credit 141600 Pension Asse Click if you would like to Show Work for this
question: 141600 Open Show
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