The Jayson Company has had a defined benefit pension plan forseveral years. At the...

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Accounting

The Jayson Company has had a defined benefit pension plan forseveral years. At the end of 2016, Jayson had the followingbalances related to the plan:
          Projected benefitobligation                                                                           $980,000
          Unrecognized prior service cost (remainder to be amortized over 10years)            72,000
          Unrecognized net loss                                                                                      128,000
          Plan assets (at fair value)                                                                                 725,000
          Pension liability                                                                                              255,000
On 1/1/17, Jayson amended the plan toprovide an increased amount of pension benefits; the prior servicecost resulting from this amendment was $60,000. At 1/1/17, theaverage remaining service life of employees expected to receivebenefits was 10 years.
The following information relates to the year 2017:
                  ServiceCost                                                         $123,000
                  Settlement rate                                                             9%
                  Expected rate of return on planassets                             8%
                  Plan contribution (atyear-end)                                   90,000
                  Benefit payments to retirees (atyear-end)                   80,000

In 2017, Jayson’s actual return onplan assets was $54,000. Jayson follows a policy of recognizinggains/losses on a delayed basis using the "corridor approach". In2017, there were no changes in estimates and assumptions relatingto computation of the projected benefit obligation.
Required:
a.   Prepare Jayson’spension worksheet, and prepare the journal entry that Jayson wouldmake to record the expense calculated.
b. Prepare the pension note to the12/31/17 financial statements.

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GIVEN DATAJayson Company has had a defined benefit pension plan forseveral years and their details mention belowREQURIEDa Prepare Jaysons pension worksheet and preparethe journal entry that See Answer

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In: AccountingThe Jayson Company has had a defined benefit pension plan forseveral years. At the end...The Jayson Company has had a defined benefit pension plan forseveral years. At the end of 2016, Jayson had the followingbalances related to the plan: Projected benefitobligation $980,000 Unrecognized prior service cost (remainder to be amortized over 10years) 72,000 Unrecognized net loss 128,000 Plan assets (at fair value) 725,000 Pension liability 255,000On 1/1/17, Jayson amended the plan toprovide an increased amount of pension benefits; the prior servicecost resulting from this amendment was $60,000. At 1/1/17, theaverage remaining service life of employees expected to receivebenefits was 10 years.The following information relates to the year 2017: ServiceCost $123,000 Settlement rate 9% Expected rate of return on planassets 8% Plan contribution (atyear-end) 90,000 Benefit payments to retirees (atyear-end) 80,000 In 2017, Jayson’s actual return onplan assets was $54,000. Jayson follows a policy of recognizinggains/losses on a delayed basis using the "corridor approach". In2017, there were no changes in estimates and assumptions relatingto computation of the projected benefit obligation.Required:a. Prepare Jayson’spension worksheet, and prepare the journal entry that Jayson wouldmake to record the expense calculated.b. Prepare the pension note to the12/31/17 financial statements.