Question

Ivanhoe Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $89,400 Contribution to the plan 104,800 Prior service cost amortization 9,700 Actual and expected return on plan assets 64,400 Benefits paid 40,800 Plan assets at January 1, 2017 627,300 Projected benefit obligation at January 1, 2017 697,700 Accumulated OCI (PSC) at January 1, 2017 149,700 Interest/discount (settlement) rate 10 % Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017.

Answer 1

Item Projected Benefit Obligation Planned Asset

Opening Balance (697,700) 627,300

Service Costs (89,400)

Interest Costs (6,977)

Actual Returns 64,400

Contributions 104,800

Benefits Paid 40,800 (40,800)

Balance at 31 Dec 753,277 755,700

Step-by-step explanation:

Ivanhoe Company provides the following information about its defined benefit pension plan for the year 2017.

Service cost $89,400

Contribution to the plan 104,800

Prior service cost amortization 9,700

Actual and expected return on plan assets 64,400

Benefits paid 40,800

Plan assets at January 1, 2017 627,300

Projected benefit obligation at January 1, 2017 697,700

Accumulated OCI (PSC) at January 1, 2017 149,700 Interest/discount (settleme

Item Pension Expense Cash PSC Gain/Loss Pension Asset/Liabiity

Service Costs 89,400

Interest Costs 6,977

Past Service Costs...............................149,700

Actual Returns (64,400)

Contributions..................... .(104,800)

................................................. ................. .......................................................

TOTAL 31,977 (104,800) 149,700..................... 222,223

Item Projected Benefit Obligation Planned Asset

Opening Balance (697,700) 627,300

Service Costs (89,400)

Interest Costs (6,977)

Actual Returns 64,400

Contributions 104,800

Benefits Paid 40,800 (40,800)

Balance at 31 Dec 753,277 755,700