Markland Corporation sponsors a defined benefit pension plan for its employees. On January 1, 2018, the following balances relate to this plan. Plan assets $500,000 Defined benefit obligation 800,000 Pension asset/liability 300,000 As a result of the operation of the plan during 2018, the following additional data were provided by the actuary. Service cost for 2018 $150,000 Discount (interest) rate 8% Actual return on plan assets in 2018 60,000 Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions 85,000 Contributions in 2018 120,000 Benefits paid to retirees in 2018 90,000 Instructions (a) Using the data above, use a computer spreadsheet to prepare a pension worksheet. On the pension worksheet, compute pension expense, pension asset/liability, defined benefit obligation, plan assets, and other comprehensive income. (b) Prepare the journal entry for pension expense for 2018.
Markland Corporation sponsors a defined benefit pension plan for its employees. On January 1, 2018, the following balances relate to this plan.
Plan assets $500,000
Defined benefit obligation 800,000
Pension asset/liability 300,000
As a result of the operation of the plan during 2018, the following additional data were provided by the actuary.
Service cost for 2018 $150,000
Discount (interest)
Actual return on plan assets in 2018 60,000
Unexpected loss from change in defined benefit obligation,
due to change in actuarial predictions 85,000
Contributions in 2018 120,000
Benefits paid to retirees in 2018 90,000
Instructions
(a) Using the data above, use a computer spreadsheet to prepare a pension worksheet. On the pension worksheet, compute pension expense, pension asset/liability, defined benefit obligation, plan assets, and other comprehensive income.
(b) Prepare the
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