Question

At January 1, 2017, Hennein Company had plan assets of $280,000 and a projected benefit obligation of the same amount. During 2017, service cost was $27,500, the settlement rate was 10%, actual and expected return on plan assets were $25,000, contributions were $20,000, and benefits paid were $17,500. Prepare a pension worksheet for Hennein Company for 2017.

HENNEIN COMPANY

General Journal Entries Memo Record

Items Pension Expense Cash Pension Asset/Liability Projected Benefit Obligation Plan Assets 1/1/17 $ $ $ $ $

Service cost

Interest cost

Actual return

Contributions

Benefits

Journal entry, 12/31/17 $ $

Balance, 12/31/17 $ $ $

Answer 1