Flounder Company Received The Following Selected Information From Its Pension Pl

Flounder Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2017.

January 1, 2017

December 31, 2017

Projected benefit obligation



Market-related and fair value of plan assets



Accumulated benefit obligation



Accumulated OCI (G/L)—Net gain



The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $121,300. The company’s actual funding (contributions) of the plan in 2017 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,213,000 on January 1, 2017. Assume no benefits paid in 2017.

Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)

Components of Pension Expense


Show List of Accounts

Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)

Account Titles and Explanation



(To record pension expense and employer’s contribution)

Show List of Accounts

Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Flounder Company for the year 2017.

Flounder Company

Income Statement (Partial)


Flounder Company

Comprehensive Income Statement




Flounder Company

Balance Sheet (Partial)



Click if you would like to Show Work for this question:Open Show Work


"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"