Exercise 20-11 Sarasota Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $151,990 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $893,900, an accumulated benefit obligation of $794,800, and a debit balance of $403,900 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $603,500 at the beginning of the year. The actual and expected return on plan assets was $54,400. The settlement rate was 10%. No gains or losses occurred in 2020 and no benefits were paid. 4. Amortization of prior service cost was $49,800 in 2020. Amortization of net gain or loss was not required in 2020. Determine the amounts of the components of pension expense that should be recognized by the company in 2020. Components of Pension Expense $enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount select a component of Pension Expense $enter a total amount Prepare the journal entry or entries to record pension expense and the employer’s contribution to the pension trustee in 2020. Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Sarasota Company for the year 2020. Sarasota Company Income Statement (Partial) choose the accounting period December 31, 2020 For the Year Ended $enter a dollar amount Sarasota Company Comprehensive Income Statement choose the accounting period December 31, 2020 For the Year Ended December 31, 2020 $XXXX enter a dollar amount $XXXX Sarasota Company Balance Sheet (Partial) choose the accounting period December 31, 2020 $enter a dollar amount
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