Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value) 1,730 2,670 Settlement rate and expected rate of return 10% Pension asset/liability 780 ? Service cost for the year 2020 400 Contributions (funding in 2020) 690 Benefits paid in 2020 200 (a1) Prepare a 2020 pension worksheet. (Enter all amounts as positive.) BONITA COMPANY Pension Worksheet—2020 General Journal Entries Memo Record Entries Items Annual Pension Expense
Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value) 1,730 2,670 Settlement rate and expected rate of return 10% Pension asset/liability 780 ? Service cost for the year 2020 400 Contributions (funding in 2020) 690 Benefits paid in 2020 200 (a1) Prepare a 2020 pension worksheet. (Enter all amounts as positive.) BONITA COMPANY Pension Worksheet—2020 General Journal Entries Memo Record Entries Items Annual Pension Expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.
| January 1, 2020 | December 31, 2020 | |||
| Vested benefit obligation | $1,520 | $1,930 | ||
| Accumulated benefit obligation | 1,930 | 2,700 | ||
| Projected benefit obligation | 2,510 | 3,360 | ||
| Plan assets (fair value) | 1,730 | 2,670 | ||
| Settlement rate and expected |
10% | |||
| Pension asset/liability | 780 | ? | ||
| Service cost for the year 2020 | 400 | |||
| Contributions (funding in 2020) | 690 | |||
| Benefits paid in 2020 | 200 |
(a1)
Prepare a 2020 pension worksheet. (Enter all amounts as positive.)
|
BONITA COMPANY
Pension Worksheet—2020 |
||||
|
General
|
Memo Record Entries
|
|||
|
Items
|
Annual Pension
Expense |
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