Question

Exercise 20-11 (Part Level Submission) Sage Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $55,700. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,323 for 2017. 3. As of January 1, 2017, the company had a projected benefit obligation of $894,700, an accumulated benefit obligation of $792,500, and a debit balance of $402,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,400 at the beginning of the year. The actual and expected return on plan assets was $54,300. The settlement rate was 9%. No gains or losses occurred in 2017 and no benefits were paid. 4. Amortization of prior service cost was $49,800 in 2017. Amortization of net gain or loss was not required in 2017. Collapse question part (a) Correct answer. Your answer is correct. Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension Expense Entry field with correct answer $Entry field with correct answer 55700 Entry field with correct answer Entry field with correct answer 80523 Entry field with correct answer Entry field with correct answer -54300 Entry field with correct answer Entry field with correct answer 49800 Entry field with correct answer $Entry field with correct answer 131723 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used Collapse question part (b) Prepare the journal entry or entries to record pension expense and the employer’s contribution to the pension trustee in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Pension Expense 131723 Pension Expense Cash Click if you would like to Show Work for this question: Open Show Work

Answer 1