The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2018: Service cost $1,000,000 Actual return on plan assets 500,000 Annual contribution to the plan 1,840,000 Amortization of prior service cost 250,000 Benefits paid to retirees 120,000 Settlement rate 10% Expected rate of return on plan assets 8% The accumulated benefit obligation at December 31, 2018, amounted to $6,500,000. Instructions (a) Using the above information for Marlin Corporation and the amounts posted on the work sheet, complete the pension work sheet for 2018. Indicate (credit) entries by parentheses. Calculated amounts should be supported. Marlin Corporation Pension Work Sheet - 2018 General Journal Entries Memo Entries Annual Pension Expense Cash Prior Service Cost OCI Gain/Loss Pension Asset/Liab Projected Benefit Obligation Plan Assets Bal, 12/31/17 125,000 2,500,000 cr 8,000,000 cr 5,500,000 dr

The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2018: Service cost $1,000,000 Actual return on plan assets 500,000 Annual contribution to the plan 1,840,000 Amortization of prior service cost 250,000 Benefits paid to retirees 120,000 Settlement rate 10% Expected rate of return on plan assets 8% The accumulated benefit obligation at December 31, 2018, amounted to $6,500,000. Instructions (a) Using the above information for Marlin Corporation and the amounts posted on the work sheet, complete the pension work sheet for 2018. Indicate (credit) entries by parentheses. Calculated amounts should be supported. Marlin Corporation Pension Work Sheet - 2018 General Journal Entries Memo Entries Annual Pension Expense Cash Prior Service Cost OCI Gain/Loss Pension Asset/Liab Projected Benefit Obligation Plan Assets Bal, 12/31/17 125,000 2,500,000 cr 8,000,000 cr 5,500,000 dr

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 1E

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Question

The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2018:

Service cost $1,000,000

Actual return on plan assets 500,000

Annual contribution to the plan 1,840,000

Amortization of prior service cost 250,000

Benefits paid to retirees 120,000

Settlement rate 10%

Expected rate of return on plan assets 8%

The accumulated benefit obligation at December 31, 2018, amounted to $6,500,000.

Instructions

(a) Using the above information for Marlin Corporation and the amounts posted on the work sheet, complete the pension work sheet for 2018. Indicate (credit) entries by parentheses. Calculated amounts should be supported.

Marlin Corporation Pension Work Sheet - 2018
	General Journal Entries	Memo Entries
	Annual Pension Expense	Cash	Prior Service Cost	OCI Gain/Loss	Pension Asset/Liab	Projected Benefit Obligation	Plan Assets
Bal, 12/31/17			125,000		2,500,000 cr	8,000,000 cr	5,500,000 dr

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