Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan.Plan assets (market-related value) $565,000 Projected benefit obligation 656,000 Pension asset/liability 91,000 Cr.Prior service cost 86,000 Net gain or loss (debit) 92,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020.Service cost $98,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 50,000 Amortization of prior service cost 26,000 Contributions 126,000 Benefits paid retirees 92,000 Average remaining service life of active employees 10 yearsUsing the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.)Use the market-related asset value to compute the expected return and for corridor amortization.Expected return $ Corridor amortization $ Annual PensionItemsExpenseCashBalance, Jan. 1, 2020$Service costInterest costActual returnUnexpected lossAmortization of PSCAmortization of lossContributionsBenefitsJournal entry for 2020$$Accumulated OCI, Dec. 31, 2019Balance, Dec. 31, 2020>>>>>>>>>>>>>>>>>%24%24 General Journal EntriesOCI-PriorOCI- Gain/Penison Asset/Service CostLossLiability$$$>>>>>>>>>>>>>>>>>>>>>>>>%24%24>>>>>>>>>>>>

What is meant by pension? It is the retirement contribution made by the employer for the employee,…

Answered: Shamrock Corp. sponsors a defined…

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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Question

Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan.

Plan assets (market-related value)	$565,000
Projected benefit obligation	656,000
Pension asset/liability	91,000	Cr.
Prior service cost	86,000
Net gain or loss (debit)	92,000

As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020.

Service cost	$98,000
Settlement rate, 9%; expected return rate, 10%
Actual return on plan assets	50,000
Amortization of prior service cost	26,000
Contributions	126,000
Benefits paid retirees	92,000
Average remaining service life of active employees	10	years

Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.)

Use the market-related asset value to compute the expected return and for corridor amortization.

Expected return		$
Corridor amortization		$

Annual Pension
Items
Expense
Cash
Balance, Jan. 1, 2020
$
Service cost
Interest cost
Actual return
Unexpected loss
Amortization of PSC
Amortization of loss
Contributions
Benefits
Journal entry for 2020
$
$
Accumulated OCI, Dec. 31, 2019
Balance, Dec. 31, 2020
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General Journal Entries
OCI-Prior
OCI- Gain/
Penison Asset/
Service Cost
Loss
Liability
$
$
$
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%24
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