Sheridan Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $203,000; projected benefit obligation $254,000. Other data relating to 3 years' operation of the plan are as follows. 2019 2020 2021 Annual service cost $15,700 $19,000 $25,900 Settlement rate and expected rate of return 10 % 10 % 10 % Actual return on plan assets 18,400 22,300 24,100 Annual funding (contributions) 15.700 39,400 48,100 Benefits paid 14,100 16,300 20,600 Prior service cost (plan amended, 1/1/20) 162,400 Amortization of prior service cost 55,300 42.200 Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 529,400 Prepare the Journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Prepare the Journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31. 2019 Dec. 31 2020 Dec. 31. 2021
Sheridan Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $203,000; projected benefit obligation $254,000. Other data relating to 3 years' operation of the plan are as follows. 2019 2020 2021 Annual service cost $15,700 $19,000 $25,900 Settlement rate and expected rate of return 10 % 10 % 10 % Actual return on plan assets 18,400 22,300 24,100 Annual funding (contributions) 15.700 39,400 48,100 Benefits paid 14,100 16,300 20,600 Prior service cost (plan amended, 1/1/20) 162,400 Amortization of prior service cost 55,300 42.200 Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 529,400 Prepare the Journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Prepare the Journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31. 2019 Dec. 31 2020 Dec. 31. 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheridan Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning
balances: plan assets $203,000; projected benefit obligation $254,000. Other data relating to 3 years' operation of the plan are as
follows.
2019
2020
2021
Annual service cost
$15,700
$19,000
$25,900
Settlement rate and expected rate of return
10 %
10 %
10 %
Actual return on plan assets
18,400
22,300
24,100
Annual funding (contributions)
15.700
39,400
48,100
Benefits paid
14,100
16,300
20,600
Prior service cost (plan amended, 1/1/20)
162,400
Amortization of prior service cost
55,300
42.200
Change in actuarial assumptions establishes
a December 31. 2021, projected benefit obligation of:
529,400
Prepare the Journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry
for the account titles and enter 0 for the amounts.)
Prepare the Journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry
for the account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31.
2019
Dec. 31
2020
Dec. 31.
2021
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