The following facts apply to the pension plan of Teal Inc. for the year 2020. Plan assets, January 1, 2020 $534,900 Projected benefit obligation, January 1, 2020 534,900 Settlement rate 8 % Service cost 40,500 Contributions (funding) 23,800 Actual and expected return on plan assets 53,000 Benefits paid to retirees 31,900 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.)
The following facts apply to the pension plan of Teal Inc. for the year 2020. Plan assets, January 1, 2020 $534,900 Projected benefit obligation, January 1, 2020 534,900 Settlement rate 8 % Service cost 40,500 Contributions (funding) 23,800 Actual and expected return on plan assets 53,000 Benefits paid to retirees 31,900 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following facts apply to the pension plan of Teal Inc. for the year 2020.
| Plan assets, January 1, 2020 | $534,900 | ||
| Projected benefit obligation, January 1, 2020 | 534,900 | ||
| Settlement rate | 8 | % | |
| Service cost | 40,500 | ||
| Contributions (funding) | 23,800 | ||
| Actual and expected return on plan assets | 53,000 | ||
| Benefits paid to retirees | 31,900 |
Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the
Transcribed Image Text:TEAL INC
Pension Workshe
General Journal Entries
Annual Pension
Items
Expense
Cash
Balance, January 1, 2020
$
Service cost
Interest cost
Actual return
Contributions
Benefits
Journal entry, December 31
$
Balance, December 31, 2020
$
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Transcribed Image Text:EAL INC.
Vorksheet-2020
Memo Record
Projected Benefit
Obligation
Pension Asset/
Plan
Liability
Assets
$
$
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