Carla Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $ 197,800; projected benefit obligation $ 252,000. Other data relating to 3 years’ operation of the plan are as follows. 2019 2020 2021Annual service cost $ 15,800 $ 19,300 $ 26,000 Settlement rate and expected rate of return 10% 10% 10%Actual return on plan assets 17,700 21,740 24,100 Annual funding (contributions) 15,800 39,700 47,300 Benefits paid 13,900 16,100 21,200 Prior service cost (plan amended, 1/1/20) 161,100 Amortization of prior service cost 54,200 41,000 Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 522,400 Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each yearIndicate the pension-related amounts reported in the financial statements for 2021.

Pension planThe amount put aside by the employee from his salary for benefiting at the time of…

Answered: Carla Company adopts acceptable…

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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Carla Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $ 197,800; projected benefit obligation $ 252,000. Other data relating to 3 years’ operation of the plan are as follows.

	2019		2020		2021
Annual service cost	$ 15,800			$ 19,300		$ 26,000
Settlement rate and expected rate of return	10	%		10	%	10	%
Actual return on plan assets	17,700			21,740		24,100
Annual funding (contributions)	15,800			39,700		47,300
Benefits paid	13,900			16,100		21,200
Prior service cost (plan amended, 1/1/20)				161,100
Amortization of prior service cost				54,200		41,000
Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of:						522,400

Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year

Indicate the pension-related amounts reported in the financial statements for 2021.

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