The following defined pension data of Teal Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $568,000 Plan assets, 1/1/20 553,400 Pension liability 14,600 On January 1, 2020, Teal Corp., through plan amendment, grants prior service benefits having a present value of 130,000 Settlement rate 10 % Service cost 58,500 Contributions (funding) 64,300 Actual (expected) return on plan assets 47,100 Benefits paid to retirees 36,300 Prior service cost amortization for 2020 17,400 For 2020, prepare a pension worksheet for Teal 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 Teal Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $568,000 Plan assets, 1/1/20 553,400 Pension liability 14,600 On January 1, 2020, Teal Corp., through plan amendment, grants prior service benefits having a present value of 130,000 Settlement rate 10 % Service cost 58,500 Contributions (funding) 64,300 Actual (expected) return on plan assets 47,100 Benefits paid to retirees 36,300 Prior service cost amortization for 2020 17,400 For 2020, prepare a pension worksheet for Teal 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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Exercise 20-07
The following defined pension data of Teal Corp. apply to the year 2020.
For 2020, prepare a pension worksheet for Teal Corp. that shows thejournal entry for pension expense and the year-end balances in the related pension accounts.
| Projected benefit obligation, 1/1/20 (before amendment) | $568,000 | ||
| Plan assets, 1/1/20 | 553,400 | ||
| Pension liability | 14,600 | ||
| On January 1, 2020, Teal Corp., through plan amendment, grants prior service benefits having a present value of |
130,000 | ||
| Settlement rate | 10 | % | |
| Service cost | 58,500 | ||
| Contributions (funding) | 64,300 | ||
| Actual (expected) return on plan assets | 47,100 | ||
| Benefits paid to retirees | 36,300 | ||
| Prior service cost amortization for 2020 | 17,400 |
For 2020, prepare a pension worksheet for Teal Corp. that shows the
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