Recording Pension Expense, Plan Funding, Benefit Payments LetsGo Inc. sponsors a defined benefit plan and determined that for the current year of 2020, service cost was $250,000, amortization of prior service cost was $1,800, interest cost was $21,100, and the expected (and actual) return on plan assets was $18,000. LetsGo will contribute $45,000 to the plan for 2020 and payments to retirees totaled $15,000 in 2020. Record the journal entries for pension expense, to Fund the plan, and to pay benefits for 2020. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. Dec. 31, 2020 To record pension expense Dec. 31, 2020 To record plan funding Dec. 31, 2020 To record benefit payments

Recording Pension Expense, Plan Funding, Benefit Payments LetsGo Inc. sponsors a defined benefit plan and determined that for the current year of 2020, service cost was $250,000, amortization of prior service cost was $1,800, interest cost was $21,100, and the expected (and actual) return on plan assets was $18,000. LetsGo will contribute $45,000 to the plan for 2020 and payments to retirees totaled $15,000 in 2020. Record the journal entries for pension expense, to Fund the plan, and to pay benefits for 2020. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. Dec. 31, 2020 To record pension expense Dec. 31, 2020 To record plan funding Dec. 31, 2020 To record benefit payments

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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Pronghorn Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,715,800 Accumulated benefit obligation 1,992,600 Fair value of plan assets 2,283,600 Accumulated OCI (PSC) 208,800 Accumulated OCI—Net loss (1/1/20 balance, 0) 45,600 Pension liability 432,200 Other pension plan data for 2020:    Service cost $94,600    Prior service cost amortization 42,200    Actual return on plan assets 130,900    Expected return on plan assets 176,500    Interest on January 1, 2020, projected benefit obligation 252,200    Contributions to plan 92,800    Benefits paid 139,600 Determine the amounts of other comprehensive income and comprehensive income for 2020. Net income for 2020 is $35,000. Compute the amount of accumulated other comprehensive income reported at December 31, 2020.
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The following defined pension data of Waterway Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $509,000 Plan assets, 1/1/20 496,000 Pension liability 13,000 On January 1, 2020, Waterway Corp., through plan amendment,   grants prior service benefits having a present value of 123,000 Settlement rate 9 % Service cost 58,300 Contributions (funding) 59,600 Actual (expected) return on plan assets 48,300 Benefits paid to retirees 43,500 Prior service cost amortization for 2020 16,400 For 2020, prepare a pension worksheet for Waterway Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. (Enter all amounts as positive.) WATERWAY CORP.Pension Worksheet—2020 General Journal Entries Memo Record Items Annual PensionExpense Cash OCI–Prior
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