Goldman Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 $ 230,000 Service cost 31,000 Interest cost (5% discount rate) 11,500 Gain from changes in actuarial assumptions in 2021 (4,000 ) Benefits paid to retirees (10,000 ) Balance, Dec. 31 $ 258,500 Plan assets: Balance, Jan.1 $ 240,000 Actual return (expected return was $21,500) 20,000 Contributions 25,000 Benefits paid (10,000 ) Balance, Dec. 31 $ 275,000 ABO, Dec. 31 $ 234,000 January 1, 2021, balances: Prior service cost–AOCI (amortization $5,400/yr.) 5,400 Net gain–AOCI (amortization, if any, over 15 years) 54,000 There were no other relevant data. Required: 1. Calculate the 2021 pension expense. 2. Prepare the 2021 journal entries to record pension expense and funding. 3. Prepare any journal entries to record any 2021 gains or losses.

Goldman Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 $ 230,000 Service cost 31,000 Interest cost (5% discount rate) 11,500 Gain from changes in actuarial assumptions in 2021 (4,000 ) Benefits paid to retirees (10,000 ) Balance, Dec. 31 $ 258,500 Plan assets: Balance, Jan.1 $ 240,000 Actual return (expected return was $21,500) 20,000 Contributions 25,000 Benefits paid (10,000 ) Balance, Dec. 31 $ 275,000 ABO, Dec. 31 $ 234,000 January 1, 2021, balances: Prior service cost–AOCI (amortization $5,400/yr.) 5,400 Net gain–AOCI (amortization, if any, over 15 years) 54,000 There were no other relevant data. Required: 1. Calculate the 2021 pension expense. 2. Prepare the 2021 journal entries to record pension expense and funding. 3. Prepare any journal entries to record any 2021 gains or losses.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 4E

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PBO:
Balance, Jan. 1	$	230,000
Service cost		31,000
Interest cost (5% discount rate)		11,500
Gain from changes in actuarial assumptions in 2021		(4,000	)
Benefits paid to retirees		(10,000	)
Balance, Dec. 31	$	258,500
Plan assets:
Balance, Jan.1	$	240,000
Actual return (expected return was $21,500)		20,000
Contributions		25,000
Benefits paid		(10,000	)
Balance, Dec. 31	$	275,000
ABO, Dec. 31	$	234,000
January 1, 2021, balances:
Prior service cost–AOCI (amortization $5,400/yr.)		5,400
Net gain–AOCI (amortization, if any, over 15 years)		54,000