The accountant for Marlin Corporation has developed the following information for the company's defined benefit...
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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. Reuqired: (a) Using the above information for Marlin Corporation, complete the pension work sheet for 2018. Indicate (credit) entries by parentheses. Calculated amounts should be supported. (b) Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2018. Marlin Corporation Pension Work Sheet-2018 General Journal Entries Memo Entries OCI Annual Pension Expense Gain / Loss Pension Asset / Liability Projected Benefit Obligation Plan Assets Cash PSC Bal., Dec. 31, 2017 1,250,000 2,500,000 (8,000,000) 5,500,000 Service Cost Interest Cost Actual return Unexpected gain/loss Amortization of PSC Contributions Benefits Gain/loss amort. Journal entry for 2018 AOCI, 12/31/17 Balance, Dec. 31, 2018
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