Reference no: EM132596163
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 $236,000
Service cost 37,000
Interest cost (5% discount rate) 11,800
Gain from changes in actuarial assumptions in 2018 (4,600)
Benefits paid to retirees (16,000)
Balance, Dec. 31$264,200
Plan assets: Balance, Jan.1 $246,000
Actual return (expected return was $22,100) 20,000
Contributions 31,000
Benefits paid (16,000)
Balance, Dec. 31 $281,000
ABO, Dec. 31 $240,600
January 1, 2018, balances: Prior service cost-AOCI (amortization $5,010/yr.) 5,010 Net gain-AOCI (amortization, if any, over 15 years) 50,100 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.
3. Make any journal entries to record any 2018 gains or losses.