Sunland Company provides the following information about its defined benefit pension plan for the year 2025.Service costContribution to the plan$90,100104,900Prior service cost amortization10,800Actual and expected return on plan assets63,000Benefits paid40,700Plan assets at January 1, 2025643,200Projected benefit obligation at January 1, 2025690,100Accumulated OCI (PSC) at January 1, 2025150,500Interest/discount (settlement) rate10%(a)Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025. (Enter all amounts as positive.)

Retirement Benefit:Retirement refers to the time when the employees who are working in the…

Answered: C (a) Prepare a pension worksheet…

C (a) Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025. (Enter all amounts as positive.)

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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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

Sunland Company provides the following information about its defined benefit pension plan for the year 2025.
Service cost
Contribution to the plan
$90,100
104,900
Prior service cost amortization
10,800
Actual and expected return on plan assets
63,000
Benefits paid
40,700
Plan assets at January 1, 2025
643,200
Projected benefit obligation at January 1, 2025
690,100
Accumulated OCI (PSC) at January 1, 2025
150,500
Interest/discount (settlement) rate
10%
(a)
Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025. (Enter all amounts as positive.)

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