Question details

Ferreri Company received the following selected information from its pension plan
$ 5.00
Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2014.
 
January 1, 2014 December 31, 2014
Projected benefit obligation $1,487,300 $1,521,200
Market-related and fair value of plan assets 854,600 1,243,260
Accumulated benefit obligation 1,666,000 1,801,210
Accumulated OCI (G/L)—Net gain 0 (198,730 )

The service cost component of pension expense for employee services rendered in the current year amounted to $83,900 and the amortization of prior service cost was $135,210. The company’s actual funding (contributions) of the plan in 2014 amounted to $303,200. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,352,100 on January 1, 2014. Assume no benefits paid in 2014.
 
 
 
Determine the amounts of the components of pension expense that should be recognized by the company in 2014. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
 
Components of Pension Expense
 Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost $
 Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost  
 Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost  
 Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService Cost  
   
 
SHOW LIST OF ACCOUNTS
LINK TO TEXT LINK TO TEXT
 
 
 
Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
 
Account Titles and Explanation Debit Credit
     
     
     
     
     
(To record pension expense and employer’s contribution)
 
SHOW LIST OF ACCOUNTS
LINK TO TEXT
 
 
 
Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Ferreri Company for the year 2014.
 
Ferreri Company
Income Statement (Partial)
For the year ended December 31, 2014
 DividendsExpensesNet Income / (Loss)Retained Earnings – January 1, 2014Retained Earnings – December 31, 2014RevenuesTotal ExpensesTotal Revenues
    Amortization of PSC    Interest Expense    Pension Expense    Rent Expense    Service Cost     $
 
Ferreri Company
Comprehensive Income Statement
For the year ended December 31, 2014
 DividendsExpensesNet Income / (Loss)Retained Earnings – January 1, 2014Retained Earnings – December 31, 2014RevenuesTotal ExpensesTotal Revenues $XXXX
 Amortization of PSCComprehensive IncomeInterest ExpenseLiability GainPension ExpenseRent ExpenseService CostOther Comprehensive Income (Loss)
    Amortization of PSC    Comprehensive Income    Interest Expense    Liability Gain    Pension Expense    Rent Expense    Service Cost    Other Comprehensive Income (Loss)     $
    Amortization of PSC    Comprehensive Income    Interest Expense    Liability Gain    Pension Expense    Rent Expense    Service Cost    Other Comprehensive Income (Loss)      
 
 Amortization of PSCComprehensive IncomeInterest ExpenseLiability GainPension ExpenseRent ExpenseService CostOther Comprehensive Income (Loss) $XXXX
 
Ferreri Company
Balance Sheet (Partial)
December 31, 2014
 Current AssetsLiabilitiesIntangible AssetsProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Property, Plant and EquipmentTotal Stockholders' Equity
    Accounts Payable    Accounts Receivable    Accumulated Depreciation    Accumulated Other Comprehensive Income (G/L)    Accumulated Other Comprehensive Loss (G/L)    Accumulated Other Comprehensive Income (PSC)    Accumulated Other Comprehensive Loss (PSC)    Common Stock    Pension Liability    Retained Earnings     $
 Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity  
    Accounts Payable    Accounts Receivable    Accumulated Depreciation    Accumulated Other Comprehensive Income (G/L)    Accumulated Other Comprehensive Loss (G/L)    Accumulated Other Comprehensive Income (PSC)    Accumulated Other Comprehensive Loss (PSC)    Common Stock    Pension Liability    Retained Earnings     $
    Accounts Payable    Accounts Receivable    Accumulated Depreciation    Accumulated Other Comprehensive Income (G/L)    Accumulated Other Comprehensive Loss (G/L)    Accumulated Other Comprehensive Income (PSC)    Accumulated Other Comprehensive Loss (PSC)    Common Stock    Pension Liability    Retained Earnings    
Category: Education, General
Available solutions
  • Ferreri Company received the following selected information from its pension plan
    $5.00

    Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2014. January 1, 2014 December 31, 2014 Projected benefit obligation $1,48

    Submitted on: 12 Nov, 2016 12:41:25 This tutorial has not been purchased yet .