Indigo Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $91,000 Contribution to the plan 104,000 Prior service cost amortization 9,400 Actual and expected return on plan assets 62,900 Benefits paid 39,900 Plan assets at January 1, 2020 630,400 Projected benefit obligation at January 1, 2020 701,800 Accumulated OCI (PSC) at January 1, 2020 153,000
Indigo Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $91,000 Contribution to the plan 104,000 Prior service cost amortization 9,400 Actual and expected return on plan assets 62,900 Benefits paid 39,900 Plan assets at January 1, 2020 630,400 Projected benefit obligation at January 1, 2020 701,800 Accumulated OCI (PSC) at January 1, 2020 153,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Indigo Company provides the following information about its defined benefit pension plan for the year 2020.
| Service cost | $91,000 | ||
| Contribution to the plan | 104,000 | ||
| Prior service cost amortization | 9,400 | ||
| Actual and expected return on plan assets | 62,900 | ||
| Benefits paid | 39,900 | ||
| Plan assets at January 1, 2020 | 630,400 | ||
| Projected benefit obligation at January 1, 2020 | 701,800 | ||
| Accumulated OCI (PSC) at January 1, 2020 | 153,000 | ||
| Interest/discount (settlement) rate | 10 | % |
(a)
Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020. (Enter all amounts as positive.)
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INDIGO COMPANY
Pension Worksheet—2020. |
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|---|---|---|---|---|---|---|
|
General
|
Memo Record
|
|||||
|
Items
|
Annual
Pension Expense |
Cash
|
OCI
|
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