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Answer with the information in the table. Based on the information provided, determine the minimum amount that the company had to contribute to the trust.
Answer with the information in the table.
Based on the information provided, determine the minimum amount that the company had to contribute to the trust. if you wanted to avoid having to recognize a pension obligation in the 2020 statement of financial position.
b. Indicate how the company could avoid recognizing a pension expense in the 2020 income and expense statement.
At the end,iscuss the ethical implications of both actions.
PENSION WORK SHEET Memo record VS 1 4 Balance Sheet 6 5 2020 Pension Cost "Expense" 2 Employer's Funding Amount (CASH) PBO Plan Assets Net Pension Asset/Liability OCI - PSC OCI - Gain or (Loss) Balance at 1/1/2020 500,000 CR 515,000 DR 15,000 DR 42,300 DR 75,000 DR Service Cost 170,000 DR 170,000 CR Interest Cost 80,000 DR 80,000 CR Pension Expense Components 21,150 DR 21,150 CR Amortization of PSC Amortization of (Gain) or Loss Expected Assets Return 2,350 DR 2,350 CR 73,500 CR Actual Assets Return 70,000 DR Difference Between Actual and Expected Return 3,500 DR Amendments 48,850 CR 48,850 DR Changes in Actuarial Assumptions 11,350 CR 11,350 DR Payments to Retirees 30,000 DR 30,000 CR Employer's Contributions 120,000 120,000 DR Balance a 12/31/20 780,200 CR 675,000 DR 105,200 CR 70,000 DR 87,500 DR Adjusting Entry for 2020 200,000 DR 120,000 120,200 CR 27,700 DR 12,500 DR PENSION WORK SHEET Memo record VS 1 4 Balance Sheet 6 5 2020 Pension Cost "Expense" 2 Employer's Funding Amount (CASH) PBO Plan Assets Net Pension Asset/Liability OCI - PSC OCI - Gain or (Loss) Balance at 1/1/2020 500,000 CR 515,000 DR 15,000 DR 42,300 DR 75,000 DR Service Cost 170,000 DR 170,000 CR Interest Cost 80,000 DR 80,000 CR Pension Expense Components 21,150 DR 21,150 CR Amortization of PSC Amortization of (Gain) or Loss Expected Assets Return 2,350 DR 2,350 CR 73,500 CR Actual Assets Return 70,000 DR Difference Between Actual and Expected Return 3,500 DR Amendments 48,850 CR 48,850 DR Changes in Actuarial Assumptions 11,350 CR 11,350 DR Payments to Retirees 30,000 DR 30,000 CR Employer's Contributions 120,000 120,000 DR Balance a 12/31/20 780,200 CR 675,000 DR 105,200 CR 70,000 DR 87,500 DR Adjusting Entry for 2020 200,000 DR 120,000 120,200 CR 27,700 DR 12,500 DRStep by Step Solution
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