Problem 20-02Jackson Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $200,000; projected benefit obligation $250,000. Other data relating to 3 years’ operation of the plan are as follows. 2019 2020 2021Annual service cost $16,000 $19,000 $26,000 Settlement rate and expected rate of return 10% 10% 10%Actual return on plan assets 18,000 22,000 24,000 Annual funding (contributions) 16,000 40,000 48,000 Benefits paid 14,000 16,400 21,000 Prior service cost (plan amended, 1/1/20) 160,000 Amortization of prior service cost 54,400 41,600 Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 520,000 Indicate the pension-related amounts reported in the financial statements for 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -15,200 or parentheses e.g. (15,200).) Jackson CompanyPartial Income StatementFor the Year Ended December 31, 2021Operating ExpensesхPension Expense203400Other Income / ExpensesхPension Expense179530%24%24 Jackson CompanyComprehensive Income StatementFor the Year Ended December 31, 2021Net Income / (Loss)$XXXXOther Comprehensive Income (Loss)Liability Gain (Loss)(2560)Prior Service Cost Amortization16630Asset Gain (Loss)41600Comprehensive Income (Loss)$XXXX

Calculate the Operating Expense and Other Income/Expense for the Partial Income Statement.:…

Answered: Jackson Company Partial Income…

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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Problem 20-02

Jackson Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $200,000; projected benefit obligation $250,000. Other data relating to 3 years’ operation of the plan are as follows.

	2019		2020		2021
Annual service cost	$16,000			$19,000		$26,000
Settlement rate and expected rate of return	10	%		10	%	10	%
Actual return on plan assets	18,000			22,000		24,000
Annual funding (contributions)	16,000			40,000		48,000
Benefits paid	14,000			16,400		21,000
Prior service cost (plan amended, 1/1/20)				160,000
Amortization of prior service cost				54,400		41,600
Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of:						520,000

Indicate the pension-related amounts reported in the financial statements for 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -15,200 or parentheses e.g. (15,200).)

Jackson Company
Partial Income Statement
For the Year Ended December 31, 2021
Operating Expenses
х
Pension Expense
203400
Other Income / Expenses
х
Pension Expense
179530
%24
%24

Jackson Company
Comprehensive Income Statement
For the Year Ended December 31, 2021
Net Income / (Loss)
$XXXX
Other Comprehensive Income (Loss)
Liability Gain (Loss)
(2560)
Prior Service Cost Amortization
16630
Asset Gain (Loss)
41600
Comprehensive Income (Loss)
$XXXX

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