Prepare the journal entry to record the pension expense and the company's funding of the pension plan in 2020
A company sponsors a defined benefit plan for 100 employees. On January 1, 2020 the company's actuary provided the following information.
Accumulated other comprehensive (PCS). $152,800
Pension Plan assets (fair value and market -related asset value) 203,100
Accumulated benefit obligation 261,700
Projected Benefit obligation 373,200
The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31,2020 the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $55,900; the projected benefit obligation was $493,800 ; fair value of pension asset was $281,100; the accumulated benefit obligation amounted to $360,000. THe expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The acutal return on plan assets is $11,700. The company's current year's contribution to the pension plan amounted to $66,300. No benefits were paid during the year.
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