Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $463,200 Projected benefit obligation 578,200 Pension asset/liability 115,000 Accumulated OCI (PSC) 100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $86,600 Settlement rate, 8% Actual return on plan assets 53,200 Amortization of prior service cost 18,000 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,600 Contributions 99,600 Benefits paid retirees 85,100 (a) Using the data above, compute pension expense for Buffalo Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BUFFALO CORP. Pension Worksheet General Journal Entries Memo Record Items Annual Pension Expense Cash (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $463,200 Projected benefit obligation 578,200 Pension asset/liability 115,000 Accumulated OCI (PSC) 100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $86,600 Settlement rate, 8% Actual return on plan assets 53,200 Amortization of prior service cost 18,000 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,600 Contributions 99,600 Benefits paid retirees 85,100 (a) Using the data above, compute pension expense for Buffalo Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BUFFALO CORP. Pension Worksheet General Journal Entries Memo Record Items Annual Pension Expense Cash (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
| Plan assets | $463,200 | ||
| Projected benefit obligation | 578,200 | ||
| Pension asset/liability | 115,000 | ||
| Accumulated OCI (PSC) | 100,100 | Dr. |
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
| Service cost | $86,600 | |
| Settlement rate, 8% | ||
| Actual return on plan assets | 53,200 | |
| Amortization of prior service cost | 18,000 | |
| Expected return on plan assets | 50,200 | |
| Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions |
79,600 | |
| Contributions | 99,600 | |
| Benefits paid retirees | 85,100 |
(a)
Using the data above, compute pension expense for Buffalo Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.)
|
BUFFALO CORP.
Pension Worksheet |
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General
|
Memo Record
|
|||
|
Items
|
Annual Pension
Expense |
Cash
|
(b)
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