Buffalo Company provides the following information about its defined benefit pension plan for the year 2020....
Buffalo Company provides the following information about its defined benefit pension plan for the year 2020.
|
Service cost |
$90,900 |
||
|
Contribution to the plan |
103,000 |
||
|
Prior service cost amortization |
9,300 |
||
|
Actual and expected return on plan assets |
63,200 |
||
|
Benefits paid |
39,800 |
||
|
Plan assets at January 1, 2020 |
648,600 |
||
|
Projected benefit obligation at January 1, 2020 |
706,600 |
||
|
Accumulated OCI (PSC) at January 1, 2020 |
148,800 |
||
|
Interest/discount (settlement) rate |
10 |
% |
- Using Excel prepare a pension worksheet inserting January 1, 2020, balances, and then showing December 31, 2020. Prepare the worksheet in good form based on examples in chapter 20 and chapter 20 exercises.
- Prepare the journal entry to record pension expense.
Homework Answers
| Buffalo Company | ||||||||||||
| Pension Worksheet- 2020 | ||||||||||||
| General Journal Entries | Memo Record | |||||||||||
| Items | Annual Pension Expense | Cash | OCI-Prior Service Cost | Pension Asset/ Liability | Projected Benefit Obligation | Plan Assets | ||||||
| Balance, January 1, 2020 | $ 148,800 | Dr. | $ 58,000 | Cr. | $ 706,600 | Cr. | $ 648,600 | Dr. | ||||
| Service cost | $ 90,900 | Dr. | $ 90,900 | Cr. | ||||||||
| Interest cost (706600*10%) | $ 70,660 | Dr. | $ 70,660 | Cr. | ||||||||
| Actual and expected return | $ 63,200 | Cr. | $ 63,200 | Dr. | ||||||||
| Amortization of PSC | $ 9,300 | Dr. | $ 9,300 | Cr. | ||||||||
| Contributions | $ 103,000 | Cr. | $ 103,000 | Dr. | ||||||||
| Benefits | $ 39,800 | Dr. | $ 39,800 | Cr. | ||||||||
| Journal entry for 2020 | $ 107,660 | Dr. | $ 103,000 | Cr. | $ 9,300 | Cr. | $ 4,640 | Dr. | ||||
| Accumulated OCI, Dec.31, 2019 | $ 148,800 | Dr. | ||||||||||
| Balance, Dec 31, 2020 | $ 139,500 | Dr. | $ 53,360 | Cr. | $ 828,360 | Cr. | $ 775,000 | Dr. | ||||
| Journal entry | |||
| Account Titles and Explanation | Debit | Credit | |
| Pension Expense | $ 107,660 | ||
| Pension Asset/ Liability | $ 4,640 | ||
| OCI-PSC | $ 9,300 | ||
| Cash | $ 103,000 | ||
| (To record pension expense) |
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defined benefit pension plan for the year 2020.
Service cost
$90,300
Contribution to the plan
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Prior service cost amortization
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Actual and expected return on plan assets
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Benefits paid
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Plan assets at January 1, 2020
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Projected benefit obligation at January 1, 2020
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Accumulated OCI (PSC) at January 1, 2020
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Interest/discount (settlement) rate
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Prepare a pension worksheet inserting January 1, 2020, balances,
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Pearl Company provides the following information about its defined benefit pension plan for the year 2020....
Pearl Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$90,300
Contribution to the plan
106,800
Prior service cost amortization
9,600
Actual and expected return on plan assets
63,800
Benefits paid
39,700
Plan assets at January 1, 2020
629,900
Projected benefit obligation at January 1, 2020
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Accumulated OCI (PSC) at January 1, 2020
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Interest/discount (settlement) rate
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Prepare a pension worksheet inserting January 1, 2020, balances,
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Pearl Company provides the following information about its defined benefit pension plan for the year 2020....
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Prior service cost amortization
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Actual and expected return on plan assets
63,800
Benefits paid
39,700
Plan assets at January 1, 2020
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Projected benefit obligation at January 1, 2020
706,100
Accumulated OCI (PSC) at January 1, 2020
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Interest/discount (settlement) rate
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Pearl Company provides the following information about its defined benefit pension plan for the year 2020....
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defined benefit pension plan for the year 2020.
Service cost
$90,300
Contribution to the plan
106,800
Prior service cost amortization
9,600
Actual and expected return on plan assets
63,800
Benefits paid
39,700
Plan assets at January 1, 2020
629,900
Projected benefit obligation at January 1, 2020
706,100
Accumulated OCI (PSC) at January 1, 2020
150,800
Interest/discount (settlement) rate
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%
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Actual and expected return on plan assets
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Benefits paid
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Plan assets at January 1, 2020
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Projected benefit obligation at January 1, 2020
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Accumulated OCI (PSC) at January 1, 2020
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Interest/discount (settlement) rate
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Service cost
$90,300
Contribution to the plan
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Prior service cost amortization
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Actual and expected return on plan assets
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Benefits paid
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Plan assets at January 1, 2020
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Interest/discount (settlement) rate
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%
Prepare a pension worksheet inserting January 1, 2020, balances,
showing December 31,...
Pearl Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$90,300
Contribution to the plan
106,800
Prior service cost amortization
9,600
Actual and expected return on plan assets
63,800
Benefits paid
39,700
Plan assets at January 1, 2020
629,900
Projected benefit obligation at January 1, 2020
706,100
Accumulated OCI (PSC) at January 1, 2020
150,800
Interest/discount (settlement) rate
10
%
Prepare a pension worksheet inserting January 1, 2020, balances,
showing December 31,...
Pearl Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$90,300
Contribution to the plan
106,800
Prior service cost amortization
9,600
Actual and expected return on plan assets
63,800
Benefits paid
39,700
Plan assets at January 1, 2020
629,900
Projected benefit obligation at January 1, 2020
706,100
Accumulated OCI (PSC) at January 1, 2020
150,800
Interest/discount (settlement) rate
10
%
Prepare a pension worksheet inserting January 1, 2020, balances,
showing December 31,...
Pearl Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$90,300
Contribution to the plan
106,800
Prior service cost amortization
9,600
Actual and expected return on plan assets
63,800
Benefits paid
39,700
Plan assets at January 1, 2020
629,900
Projected benefit obligation at January 1, 2020
706,100
Accumulated OCI (PSC) at January 1, 2020
150,800
Interest/discount (settlement) rate
10
%
Prepare a pension worksheet inserting January 1, 2020, balances,
showing December 31,...
Pearl Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$90,300
Contribution to the plan
106,800
Prior service cost amortization
9,600
Actual and expected return on plan assets
63,800
Benefits paid
39,700
Plan assets at January 1, 2020
629,900
Projected benefit obligation at January 1, 2020
706,100
Accumulated OCI (PSC) at January 1, 2020
150,800
Interest/discount (settlement) rate
10
%
Prepare a pension worksheet inserting January 1, 2020, balances,
showing December 31,...
Pearl Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$90,300
Contribution to the plan
106,800
Prior service cost amortization
9,600
Actual and expected return on plan assets
63,800
Benefits paid
39,700
Plan assets at January 1, 2020
629,900
Projected benefit obligation at January 1, 2020
706,100
Accumulated OCI (PSC) at January 1, 2020
150,800
Interest/discount (settlement) rate
10
%
Prepare a pension worksheet inserting January 1, 2020, balances,
showing December 31,...
Bonita Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$89,400
Contribution to the plan
105,700
Prior service cost amortization
10,800
Actual and expected return on plan assets
64,500
Benefits paid
40,200
Plan assets at January 1, 2017
640,200
Projected benefit obligation at January 1, 2017
710,100
Accumulated OCI (PSC) at January 1, 2017
152,200
Interest/discount (settlement) rate
10
%
Prepare a pension worksheet inserting January 1, 2017,
balances, showing December 31,...
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