The following defined pension data of Rydell Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $560,000 Plan assets, 1/1/20 546,200 Pension liability, 1/1/20 13,800 On January 1, 2020, Rydell Corp., through plan amendment, grants prior service benefits having a present value of 120,000 Settlement rate 9% Service cost 58,000 Contributions (funding) 65,000 Actual (expected) return on plan assets 52,280 Benefits paid to retirees 40,000 Prior service cost amortization for 2020 17,000 Instructions For 2020, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.
The following defined pension data of Rydell Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $560,000 Plan assets, 1/1/20 546,200 Pension liability, 1/1/20 13,800 On January 1, 2020, Rydell Corp., through plan amendment, grants prior service benefits having a present value of 120,000 Settlement rate 9% Service cost 58,000 Contributions (funding) 65,000 Actual (expected) return on plan assets 52,280 Benefits paid to retirees 40,000 Prior service cost amortization for 2020 17,000 Instructions For 2020, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following defined pension data of Rydell Corp. apply to the year 2020.
| Projected benefit obligation, 1/1/20 (before amendment) |
$560,000
|
| Plan assets, 1/1/20 |
546,200
|
| Pension liability, 1/1/20 |
13,800
|
| On January 1, 2020, Rydell Corp., through plan amendment, grants prior service benefits having a present value of |
120,000
|
| Settlement rate |
9%
|
| Service cost |
58,000
|
| Contributions (funding) |
65,000
|
| Actual (expected) return on plan assets |
52,280
|
| Benefits paid to retirees |
40,000
|
| Prior service cost amortization for 2020 |
17,000
|
Instructions
For 2020, prepare a pension worksheet for Rydell Corp. that shows the
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