Please fix the red boxes above correctly for a thumbs up Exercise 20-14 (Part Le
ID: 2562321 • Letter: P
Question
Please fix the red boxes above correctly for a thumbs up
Exercise 20-14 (Part Level Submission) Erickson Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan January 1, 2014 December 31, 2014 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2014 Contributions (funding in 2014) Benefits paid in 2014 $2,230 4,570 3,260 2,610 10% $3,060 2,230 2,030 1,190 840 420 860 290Explanation / Answer
Actual return
850 Cr
{(2610-1190)-(860-290)}
850 Dr
Unexpected gains
731 Dr
(Actual return -expected return)
{(850-(1190×10%)}
731 Cr
Liability increase
897 Dr
{3260-(2030+420+203-290)}
897 Cr
196 Dr
(Balancing amount)
Items annual pension expense cash OCI-Gain/loss pension Assets/liabilities projected benefit obligation plan assets Balance Jan 1, 2014 840 Cr 2030 Cr 1190 Dr Service cost 420 Dr 420 Cr Interest cost 203 Dr 203 CrActual return
850 Cr
{(2610-1190)-(860-290)}
850 Dr
Unexpected gains
731 Dr
(Actual return -expected return)
{(850-(1190×10%)}
731 Cr
Contribution 860 Cr 860 Dr Benefits 290 Dr 290 CrLiability increase
897 Dr
{3260-(2030+420+203-290)}
897 Cr
Journal entry for 2014 504 Dr 860 Cr 166 Dr196 Dr
(Balancing amount)
Accumulated OCI, Dec 31,2013 Balance Dec 31, 2014 166 Dr 644 Cr 3260 Cr 2610 Dr