Ayayai Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,755,300 Accumulated benefit obligation 1,962,500 Fair value of plan assets 2,261,000 Accumulated OCI (PSC) 209,600 Accumulated OCI—Net loss (1/1/20 balance, 0) 45,800 Pension liability 494,300 Other pension plan data for 2020: Service cost $94,400 Prior service cost amortization 42,400 Actual return on plan assets 129,700 Expected return on plan assets 175,500 Interest on January 1, 2020, projected benefit obligation 252,000 Contributions to plan 94,100 Benefits paid 139,000 A) Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45). B)Determine the amounts of other comprehensive income and comprehensive income for 2020. Net income for 2020 is $35,000. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) C)Compute the amount of accumulated other comprehensive income reported at December 31, 2020. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ayayai Enterprises provides the following information relative to its defined benefit pension plan.

Balances or Values at December 31, 2020
Projected benefit obligation		$2,755,300
Accumulated benefit obligation		1,962,500
Fair value of plan assets		2,261,000
Accumulated OCI (PSC)		209,600
Accumulated OCI—Net loss (1/1/20 balance, 0)		45,800
Pension liability		494,300
Other pension plan data for 2020:
Service cost		$94,400
Prior service cost amortization		42,400
Actual return on plan assets		129,700
Expected return on plan assets		175,500
Interest on January 1, 2020, projected benefit obligation		252,000
Contributions to plan		94,100
Benefits paid		139,000

A) Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).

B)Determine the amounts of other comprehensive income and comprehensive income for 2020. Net income for 2020 is $35,000. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

C)Compute the amount of accumulated other comprehensive income reported at December 31, 2020. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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