Webb Corp. sponsors a defined benefit pension plan for itsemployees. On January 1, 2014, the following balances relate tothis plan. Plan assets $483,750 Projected benefit obligation604,400 Pension asset/liability 120,650 Accumulated OCI (PSC)103,560 Dr.
As a result of the operation of the plan during 2014, thefollowing additional data are provided by the actuary.
Service cost $93,400 Settlement rate, 10% Actual return on planassets 62,890 Amortization of prior service cost 22,460 Expectedreturn on plan assets 59,170 Unexpected loss from change inprojected benefit obligation, due to change in actuarialpredictions 77,460 Contributions 106,200 Benefits paid retirees88,820
Using the data above, compute pension expense for Webb Corp. forthe year 2014 by preparing a pension worksheet.
General Journal Entries
Memo Record Items Annual Pension Expense Cash OCI—Prior ServiceCost OCI— Gain/ Loss Pension Asset/ Liability Projected BenefitObligation Plan Assets Balance, Jan. 1, 2014 $ $ $ $ $ $ $ Servicecost Interest cost Actual return Unexpected gain Amortization ofPSC Liability increase Contributions Benefits Journal entry for2014 $ $ Accumulated OCI, Dec. 31, 2013 Balance, December 31, 2014$ $ $ $ $ Show List of Accounts Link to Text Prepare the journalentry for pension expense for 2014. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.) Account Titles and Explanation Debit Credit