Question

Coronado Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2017 Projected benefit obligation $2,715,800 Accumulated benefit obligation 1,992,600 Fair value of plan assets 2,283,600 Accumulated OCI (PSC) 208,800 Accumulated OCI—Net loss (1/1/17 balance, 0) 45,600 Pension liability 432,200 Other pension plan data for 2017: Service cost $94,600 Prior service cost amortization 42,200 Actual return on plan assets 130,900 Expected return on plan assets 176,500 Interest on January 1, 2017, projected benefit obligation 252,200 Contributions to plan 92,800 Benefits paid 139,600

Prepare the note disclosing the components of pension expense for the year 2017.

Determine the amounts of other comprehensive income and comprehensive income for 2017. Net income for 2017 is $35,000

Compute the amount of accumulated other comprehensive income reported at December 31, 2017

Answer 1

Part A

Note to financial statements disclosing components of 2017 pension expense:

Net pension expense for 2017 is composed of the following components of pension cost:

Service cost	94600
Interest cost	252200
Expected return on plan assets	(176500)
Prior service cost amortization	42200
Pension expense	$212500

Part B

Comprehensive Income, 2017

Amortization of Prior Service Cost	(42200)
Actuarial Loss	45600
Other Comprehensive Loss	3400

Net income	35000
Other Comprehensive Loss	3400
Comprehensive Income	$38400

Part C

Accumulated OCI at December 31, 2017 is $254400 (208800+45600); this amount is comprised of the following:

	PSC	Gain/loss
Balance Jan. 1, 2017	251000 Dr.
Amortization of PSC	42200 Cr.
Unexpected loss		45600 Dr.
Balance Dec. 31, 2017	208800 Dr.	45600 Dr.