Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the following balances and additional information related to this plan are: Plan assets, January 1, 2020 $170,000 Projected Benefit Obligation, January 1, 2020 260,000 Prior Service Cost, January 1, 2020 100,000 OCI-Loss, January 1, 2020 42,000 Service Cost for 2020 45,000 Actual return on plan assets 25,000 Amortization of PSC 15,000 Contributions in 2020 85,000 Benefits paid in 2020 51,000 Settlement rate 8% Expected return on assets 28,000 Average remaining service of life of active employees 10 years A. Prepare a pension worksheet using Excel B. Prepare the year journal entry to record the pension expense
Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the following balances and additional information related to this plan are: Plan assets, January 1, 2020 $170,000 Projected Benefit Obligation, January 1, 2020 260,000 Prior Service Cost, January 1, 2020 100,000 OCI-Loss, January 1, 2020 42,000 Service Cost for 2020 45,000 Actual return on plan assets 25,000 Amortization of PSC 15,000 Contributions in 2020 85,000 Benefits paid in 2020 51,000 Settlement rate 8% Expected return on assets 28,000 Average remaining service of life of active employees 10 years A. Prepare a pension worksheet using Excel B. Prepare the year journal entry to record the pension expense
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the
following balances and additional information related to this plan are:
Plan assets, January 1, 2020 $170,000
Projected Benefit Obligation, January 1, 2020 260,000
Prior Service Cost, January 1, 2020 100,000
OCI-Loss, January 1, 2020 42,000
Service Cost for 2020 45,000
Actual return on plan assets 25,000
Amortization of PSC 15,000
Contributions in 2020 85,000
Benefits paid in 2020 51,000
Settlement rate 8%
Expected return on assets 28,000
Average remaining service of life of active employees 10 years
A. Prepare a pension worksheet using Excel
B. Prepare the year journal entry to record the pension expense
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