Question

Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 $ 242,000 Service cost 43,000 Interest cost (5% discount rate) 12,100 Gain from changes in actuarial assumptions in 2018 (5,200 ) Benefits paid to retirees (22,000 ) Balance, Dec. 31 $ 269,900 Plan assets: Balance, Jan.1 $ 252,000 Actual return (expected return was $22,700) 20,000 Contributions 37,000 Benefits paid (22,000 ) Balance, Dec. 31 $ 287,000 ABO, Dec. 31 $ 247,200 January 1, 2018, balances: Prior service cost–AOCI (amortization $4,170/yr.) 4,170 Net gain–AOCI (amortization, if any, over 15 years) 41,700 There were no other relevant data. Required: 1. Calculate the 2018 pension expense. 2. Prepare the 2018 journal entries to record pension expense and funding. -Record the pension expense for the year. -Record the entry to note funding for the year. 3. Prepare any journal entries to record any 2018 gains or losses. -Record the gain or loss on plan assets. -Record the gain or loss on PBO.

Answer 1