Bonita Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $469,800 Projected benefit obligation 607,000 Pension asset/liability 137,200 Accumulated OCI (PSC) 97,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $91,100 Settlement rate, 8% Actual return on plan assets 54,400 Amortization of prior service cost 19,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,700 Contributions 99,500 Benefits paid retirees 85,800 Using the data above, compute pension expense for Bonita Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BONITA CORP. Pension Worksheet General Journal Entries Memo Record Items Annual Pension Expense Cash OCI—Prior Service Cost OCI— Gain/ Loss Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, Jan. 1, 2020 $ $ $ $ $ $ $ Service cost Interest cost Actual return Unexpected gain Amortization of PSC Liability increase Contributions Benefits Journal entry for 2020 $ $ Accumulated OCI, Dec. 31, 2019 Balance, December 31, 2020 $ $ $ $ $ eTextbook and Media List of Accounts Prepare the journal entry for pension expense for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Bonita Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $469,800 Projected benefit obligation 607,000 Pension asset/liability 137,200 Accumulated OCI (PSC) 97,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $91,100 Settlement rate, 8% Actual return on plan assets 54,400 Amortization of prior service cost 19,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,700 Contributions 99,500 Benefits paid retirees 85,800 Using the data above, compute pension expense for Bonita Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BONITA CORP. Pension Worksheet General Journal Entries Memo Record Items Annual Pension Expense Cash OCI—Prior Service Cost OCI— Gain/ Loss Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, Jan. 1, 2020 $ $ $ $ $ $ $ Service cost Interest cost Actual return Unexpected gain Amortization of PSC Liability increase Contributions Benefits Journal entry for 2020 $ $ Accumulated OCI, Dec. 31, 2019 Balance, December 31, 2020 $ $ $ $ $ eTextbook and Media List of Accounts Prepare the journal entry for pension expense for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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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Bonita Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.

Plan assets	$469,800
Projected benefit obligation	607,000
Pension asset/liability	137,200
Accumulated OCI (PSC)	97,100	Dr.

As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.

Service cost		$91,100
Settlement rate, 8%
Actual return on plan assets		54,400
Amortization of prior service cost		19,100
Expected return on plan assets		51,600
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions		79,700
Contributions		99,500
Benefits paid retirees		85,800

Using the data above, compute pension expense for Bonita Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.)

BONITA CORP.
Pension Worksheet

General Journal Entries

Memo Record

Items

Annual Pension
Expense

Cash

OCI—Prior
Service Cost

OCI— Gain/
Loss

Pension Asset/
Liability

Projected Benefit
Obligation

Plan
Assets

Balance, Jan. 1, 2020


Service cost


Interest cost


Actual return


Unexpected gain


Amortization of PSC


Liability increase


Contributions


Benefits


Journal entry for 2020		$


Accumulated OCI, Dec. 31, 2019


Balance, December 31, 2020								$

eTextbook and Media

List of Accounts

Prepare the journal entry for pension expense for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

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