### Defined Benefit Pension Plan Information for Sweet Company (Year 2020)Sweet Company provides the following detailed information regarding its defined benefit pension plan for the year 2020:- **Service Cost**: $91,000- **Contribution to the Plan**: $106,400- **Prior Service Cost Amortization**: $10,800- **Actual and Expected Return on Plan Assets**: $65,200- **Benefits Paid**: $40,500- **Plan Assets at January 1, 2020**: $633,900- **Projected Benefit Obligation at January 1, 2020**: $701,600- **Accumulated Other Comprehensive Income (Prior Service Costs) at January 1, 2020**: $149,900- **Interest/Discount (Settlement) Rate**: 9%This comprehensive data is essential for understanding the financial health and obligations of Sweet Company's defined benefit pension plan for the given year. It includes contributions, costs, and returns associated with the plan, along with the plan's obligations and assets at the start of the year. The interest or discount rate is crucial as it influences the present value of future benefit obligations. Understanding these metrics helps in assessing the sustainability and funding status of the pension plan. ### Journal Entry for Recording Pension Expense#### InstructionsPrepare the journal entry recording pension expense. **Note: Credit account titles are automatically indented when the 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.**#### Journal Entry Template| Account Titles and Explanation | Debit | Credit ||-------------------------------|-------|--------|| | | || | | || | | || | | |*Figure (b): The table above is a template meant for recording a journal entry specifically for pension expenses. There are columns provided for "Account Titles and Explanation," "Debit," and "Credit," with sufficient rows for multiple entries.*This table should be utilized to detail the specific accounts affected by the pension expense transaction, indicating the respective amounts to be debited and credited in accordance with standard accounting practices.

Pension Expenses: When a company provides its employees with a defined benefit pension plan, the…

Sweet Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $91.000 Contribution to the plan 106,400 Prior service cost amortization 10,800 Actual and expected return on plan assets 65,200 Benefits paid 40,500 Plan assets at January 1,2020 633,900 Projected benefit obligation at January 1, 2020 701,600 Accumulated OCI (PSC) at January 1, 2020 149,900 Interest/discount (settlement) rate 9 %

Sweet Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $91.000 Contribution to the plan 106,400 Prior service cost amortization 10,800 Actual and expected return on plan assets 65,200 Benefits paid 40,500 Plan assets at January 1,2020 633,900 Projected benefit obligation at January 1, 2020 701,600 Accumulated OCI (PSC) at January 1, 2020 149,900 Interest/discount (settlement) rate 9 %

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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On January 1, 2021, a company has the following balances for its defined-benefit plan: Projected benefit obligation $536,000Fair value of plan assets 804,000 Other data related to the pension plan for 2021 are: Amortization of accumulated OCI-loss $76,000 Decrease in projected benefit obligation due to changes in actuarial assumptions 165,000 Service cost 311,840 Interest cost 218,000 Amortization of prior service costs 133,000 Contributions 475,000 Benefits paid 272,740 Actual return on plan assets 398,000 Expected return on plan assets 406,000 The balance of the projected benefit obligation at December 31, 2021 is $__________.
On January 1, 2021, Crane Co. has the following balances: Projected benefit obligation $3450000 Fair value of plan assets 2950000 The settlement rate is 9%. Other data related to the pension plan for 2021 are: Service cost $295000 Amortization of prior service costs due to increase in benefits 98000 Contributions 495000 Benefits paid 220000 Actual return on plan assets 390000 Amortization of net gain 29000 The fair value of plan assets at December 31, 2021 is $3450000. $3840000. $3615000. $3389000.
Cullumber Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $612,000; projected benefit obligation $612,000. Other data relating to 3 years' operation of the plan are shown below. 2019 2020 $49,000 2021 $63,000 Annual service cost $40,000 Settlement rate and expected rate of return Actual return on plan assets 39,000 50,800 61,000 Annual funding (contributions) 11,000 29,000 57,000 Benefits paid 27,000 31,000 45,000 Prior service cost (plan amended, 1/1/20) 279,000 Amortization of prior service cost 40,000 58,000 Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 964,000 8 % 8 % 8 %
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Peach Corporation uses IFRS. Presented below is information relate to Peach Corporation's defined benet pension plan for calendar 2023: Defined benefit obligation, January 1 200,000 Fair value of plan assets, January 1 180,000 Current service cost 27,000 Contributions to plan 25,000 Actual and expected return on plan assets 9,000 Benefits paid to retirees 40,000 Interest (discount) rate 10% The balance of the defined benefit obligation at December 31, 2023 is a) $185,000. b) $187,000. c) $207,000. d) $245,000.
age Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $198,200; projected benefit obligation $251,000. Other data relating to 3 years’ operation of the plan are as follows. 2019 2020 2021 Annual service cost $16,300 $19,100 $26,400 Settlement rate and expected rate of return 10 % 10 % 10 % Actual return on plan assets 18,400 21,870 24,000 Annual funding (contributions) 16,300 39,200 47,700 Benefits paid 14,200 16,100 21,400 Prior service cost (plan amended, 1/1/20) 161,700 Amortization of prior service cost 54,100 41,700 Change in actuarial assumptions establishesa December 31, 2021, projected benefit obligation of: 524,600 a. How to prepare a pension worksheet presenting all 3 years’ pension balances and activities.