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Question 25 Blossom Company received the following selected information fromits pension plan trustee concerning the operation of the company’sdefined benefit pension plan for the year ended December 31,2017. January 1, 2017 December 31, 2017 Projected benefit obligation $1,488,000 $1,514,000 Market-related and fair value of plan assets 809,000 1,135,900 Accumulated benefit obligation 1,600,000 1,718,800 Accumulated OCI (G/L)—Net gain 0 (198,800 ) The service cost component of pension expense for employee servicesrendered in the current year amounted to $76,000 and theamortization of prior service cost was $118,800. The company’sactual funding (contributions) of the plan in 2017 amounted to$246,000. The expected return on plan assets and the actual ratewere both 10%; the interest/discount (settlement) rate was 10%.Accumulated other comprehensive income (PSC) had a balance of$1,188,000 on January 1, 2017. Assume no benefits paid in 2017.

Determine the amounts of the components of pension expense thatshould be recognized by the company in 2017. (Enteramounts that reduce pension expense with either a negative signpreceding the number e.g. -45 or parenthesis e.g.(45).) Components of Pension Expense Actual Return on Plan AssetsAmortization of Prior ServiceCostBenefits PaidContributions to PlanExpected Return on PlanAssetsInterest on Projected Benefit ObligationService Cost $ Actual Return on Plan AssetsAmortization of Prior ServiceCostBenefits PaidContributions to PlanExpected Return on PlanAssetsInterest on Projected Benefit ObligationService Cost Actual Return on Plan AssetsAmortization of Prior ServiceCostBenefits PaidContributions to PlanExpected Return on PlanAssetsInterest on Projected Benefit ObligationService Cost Actual Return on Plan AssetsAmortization of Prior ServiceCostBenefits PaidContributions to PlanExpected Return on PlanAssetsInterest on Projected Benefit ObligationService Cost SHOW LIST OF ACCOUNTS

Prepare the journal entry to record pension expense and theemployer’s contribution to the pension plan in 2017.(Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter 0 for theamounts.) Account Titles and Explanation Debit Credit (To record pension expense and employer’s contribution) SHOW LIST OF ACCOUNTS

Indicate the pension-related amounts that would be reported onthe income statement and the balance sheet for Blossom Company forthe year 2017. Blossom Company Income Statement (Partial) December 31, 2017For the Year Ended December 31, 2017For theQuarter Ended December 31, 2017 DividendsExpensesNet Income / (Loss)Retained Earnings – January1, 2017Retained Earnings – December 31, 2017RevenuesTotalExpensesTotal Revenues Amortization of PSC    InterestExpense    PensionExpense    RentExpense    Service Cost $ Blossom Company Comprehensive Income Statement December 31, 2017For the Year Ended December 31, 2017For theQuarter Ended December 31, 2017 DividendsExpensesNet Income / (Loss)Retained Earnings – January1, 2017Retained Earnings – December 31, 2017RevenuesTotalExpensesTotal Revenues $XXXX Amortization of PSCComprehensive IncomeInterest ExpenseLiabilityGainPension ExpenseRent ExpenseService CostOther ComprehensiveIncome (Loss) Amortization of PSC    ComprehensiveIncome    InterestExpense    LiabilityGain    PensionExpense    RentExpense    ServiceCost    Other Comprehensive Income (Loss) $ Amortization of PSC    ComprehensiveIncome    InterestExpense    LiabilityGain    PensionExpense    RentExpense    ServiceCost    Other Comprehensive Income (Loss) Amortization of PSCComprehensive IncomeInterest ExpenseLiabilityGainPension ExpenseRent ExpenseService CostOther ComprehensiveIncome (Loss) $XXXX Blossom Company Balance Sheet (Partial) December 31, 2017For the Year Ended December 31, 2017For theQuarter Ended December 31, 2017 Current AssetsLiabilitiesIntangible AssetsProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Property, Plant andEquipmentTotal Stockholders' Equity Accounts PayableAccounts ReceivableAccumulatedDepreciationAccumulated Other Comprehensive Income (G/L)AccumulatedOther Comprehensive Loss (G/L)Accumulated Other ComprehensiveIncome (PSC)Accumulated Other Comprehensive Loss (PSC)CommonStockPension LiabilityRetained Earnings $ Current AssetsCurrent LiabilitiesIntangible AssetsLong-termInvestmentsLong-term LiabilitiesProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Long-termInvestmentsTotal Long-term LiabilitiesTotal Property, Plant andEquipmentTotal Stockholders' Equity Accounts PayableAccounts ReceivableAccumulatedDepreciationAccumulated Other Comprehensive Income (G/L)AccumulatedOther Comprehensive Loss (G/L)Accumulated Other ComprehensiveIncome (PSC)Accumulated Other Comprehensive Loss (PSC)CommonStockPension LiabilityRetained Earnings $ Accounts PayableAccounts ReceivableAccumulatedDepreciationAccumulated Other Comprehensive Income (G/L)AccumulatedOther Comprehensive Loss (G/L)Accumulated Other ComprehensiveIncome (PSC)Accumulated Other Comprehensive Loss (PSC)CommonStockPension LiabilityRetained Earnings