ACCT 302 Exam II_Extra Credit Question (15 points) The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2020 and 2021: Account Annual Service cost Actual return on plan assets Amortization of prior service cost Annual contribution to the plan Benefits paid to retirees Settlement rate Expected rate of return on plan assets 2020 2021 $1,000,000 $1,200000 500,000 600,000 250,000 230,000 1,050,000 1,230000 1,220,000 1,500,000 5% 5% 10% 9% The projected benefit obligation on December 31, 2021, amounted to $8,750,000. Instructions (a) Using the above information for Marlin Corporation, complete yue pension worksheet for 2020 and 2021. Calculated amounts should be supported. (b) Prepare the journal entry (entries) to reflect the accounting for the company's pension plan for the year ending December 31, 2020 and 2021. @) Determine whether there will be any net gains/losses amortization for 2022 using the corridor approach. (d) (Bonus 2 points) Indicate the pension-related accounts and amounts reported in the financial statements (both income statement and balance sheet statement) for 2021. il ile > ill = > 2017 Events Journal Pension spense Entries OCI-PSC cash OG Net Bosses Disclosures Pension Projected LA Pension Obi 22.500.000 8,000,000 Pension Assets 5,500,000dr 1/1/bal 1,250,000 dr. Service Cost Inter. Exp Actual Return Unexpected Losor Gain Amor. of PSC Cash Contribution Benefit Paid Journal Entry 12/31 Balances 2018 Events Journal Pension expense cash Entries OCH PSC Disclosures OG Netension Projected Pension Lim/Assets Pension Oblis Assets 1/1 bal. Service Cost Inter. Exp Actual Return Unexpected Loss or Gain Amor of PSC Cash Contribution Benefit Paid Liability Adjust Journal Entry 12/31 Balances ACCT 302 Exam II_Extra Credit Question (15 points) The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2020 and 2021: Account Annual Service cost Actual return on plan assets Amortization of prior service cost Annual contribution to the plan Benefits paid to retirees Settlement rate Expected rate of return on plan assets 2020 2021 $1,000,000 $1,200000 500,000 600,000 250,000 230,000 1,050,000 1,230000 1,220,000 1,500,000 5% 5% 10% 9% The projected benefit obligation on December 31, 2021, amounted to $8,750,000. Instructions (a) Using the above information for Marlin Corporation, complete yue pension worksheet for 2020 and 2021. Calculated amounts should be supported. (b) Prepare the journal entry (entries) to reflect the accounting for the company's pension plan for the year ending December 31, 2020 and 2021. @) Determine whether there will be any net gains/losses amortization for 2022 using the corridor approach. (d) (Bonus 2 points) Indicate the pension-related accounts and amounts reported in the financial statements (both income statement and balance sheet statement) for 2021. il ile > ill = > 2017 Events Journal Pension spense Entries OCI-PSC cash OG Net Bosses Disclosures Pension Projected LA Pension Obi 22.500.000 8,000,000 Pension Assets 5,500,000dr 1/1/bal 1,250,000 dr. Service Cost Inter. Exp Actual Return Unexpected Losor Gain Amor. of PSC Cash Contribution Benefit Paid Journal Entry 12/31 Balances 2018 Events Journal Pension expense cash Entries OCH PSC Disclosures OG Netension Projected Pension Lim/Assets Pension Oblis Assets 1/1 bal. Service Cost Inter. Exp Actual Return Unexpected Loss or Gain Amor of PSC Cash Contribution Benefit Paid Liability Adjust Journal Entry 12/31 Balances
