chapter 20 exercise 12 403738

AE20 12 (Pension Expense, Journal Entries, Statement Presentation) Ferreri 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, 2012. January , 2012 December 31, 2012 Projected benefit obligation $1,410,100 $1,441,500 Market related and fair value of plan assets 826,200 1,226,120 Accumulated benefit obligation 1,600,000 1,720,000 Accumulated OCI (G/L) Net gain 0 (191,010) The service cost component of pension expense for employee services rendered in the current year amounted to $81,400 and the amortization of prior service cost was $120,000. The company’s actual funding (contributions) of the plan in 2012 amounted to $317,300. 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 $1,200,000 on January 1, 2012. Assume no benefits paid in 2012. (a) Determine the amount of the components of pension expense that should be recognized by the company in 2012. (b) Prepare the journal entries to record pension expense and the employer’s contribution to the pension plan in 2012. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) (c) Indicate the pension related amounts that would be reported on the income statement and the balance sheet for Ferreri Company for the year 2012. For my answer I got: Pension Expense 259,790 Other Comprehensive Income (G/L) 191,010 Cash 317,300 Pension Asset / Liability 13,500 Other Comprehensive Income (PSC) 120,000 Income Statement Amount: 311,010 Balance Sheet Liabilities: 151,010 However, the homework system says this is incorrect. Please help?