Season Tyme Tea Company provided the following information related to its defined-benefit pension…

Season Tyme Tea Company provided the following information related to its defined-benefit pension plan. Beginning plan assets at fair value (equal to the market-related asset value)…………………….. $ 954,500 Beginning projected benefit obligation (PBO)………………. 1,020,340 Service cost for the year……………………………………… 81,500 Settlement rate……………………………………………….. 10% Expected return on plan assets……………………………….. 16% Actual return on plan assets…………………………………… 123,400 Contributions for the year…………………………………….. 67,480 Benefit payments for the year………………………………… 47,440 Beginning Accumulated Other Comprehensive Income related to prior service costs (debit balance)*………. 65,840 Amortization of prior service costs………………………….. 15,500 Increase in the ending projected benefit obligation due to changes in actuarial assumptions (i.e., actuarial loss).. 78,625 Average remaining service life of employee base (ARSL)… 10 years *There is no accumulated OCI related to actuarial gains/ losses as of the beginning of the year. Required a. Compute the pension cost for the year. b. Determine the ending balances of the plan assets and the projected benefit obligation and indicate the funded status of the plan. c. Determine the ending balance for accumulated other comprehensive income. d. Prepare the journal entry to record the current year’s pension cost. e. Reconcile the ending balance in accumulated other comprehensive income. View Solution:
Season Tyme Tea Company provided the following information related to