Answer and Explanation:
The preparation of pension worksheet is shown below:-
General Journal entries
Particulars Annual pension Cash Pension Assets/
expenses Liabilities
Service cost $43,700 Dr.
Interest cost $39,608 Dr.
(495,100 × 8%)
Actual return $52,100 Cr.
Contributions $26,600 Cr.
Journal Entry 31 Dec $31,208 Dr. $26,600 Cr. $4,608 Cr.
Balance 31 Dec 217 $4,608 Cr.
Memo record
Projected benefit obligation Plant assets
Balance Jan 1 2017 $495,100 Cr. $495,100 Dr.
Service cost $43,700 Cr.
Interest cost $39,608 Cr.
(495,100 × 8%)
Actual return $52,100 Dr.
Contributions $26,600 Dr.
Benefits $36,500 Dr. $36,500 Cr.
Balance 31 Dec 217 $541,908 Cr. $537,300 Dr.
