Using the information in E20.19, prepare a worksheet inserting January 1, 2020, balances, and showing December 31,

Question:

Using the information in E20.19, prepare a worksheet inserting January 1, 2020, balances, and showing December 31, 2020, balances. Prepare the journal entry recording post-retirement benefit expense.

Service cost................................................................$ 45,000
Contribution to the plan..............................................10,000
Actual and expected return on plan assets...............11,000
Benefits paid..................................................................20,000
Plan assets at January 1, 2020...................................110,000
Accumulated post-retirement benefit obligation
at January 1, 2020......................................................330,000
Discount rate.......................................................................8%

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...

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