Question - Ayayai Company provides the following information about its defined benefit pension plan for the year 2017.
Service cost $91,200
Contribution to the plan 104,700
Prior service cost amortization 9,800
Actual and expected return on plan assets 62,800
Benefits paid 40,500
Plan assets at January 1, 2017 632,600
Projected benefit obligation at January 1, 2017 686,700
Accumulated OCI (PSC) at January 1, 2017 152,100
Interest/discount (settlement) rate 9%
Requirements:
1. Using Excel prepare a pension worksheet inserting January 1, 2017, balances, and then showing December 31, 2017. Prepare the worksheet in good form based on examples in chapter 20 and chapter 20 exercises.
2. Prepare the journal entry to record pension expense.