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Are these entries right? and what is the expected return and corridor amortization? Cullumber Corp. sponsors a defined benefit pension plan for its employees. On
Are these entries right? and what is the expected return and corridor amortization?
Cullumber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $471,000 687,000 216,000 Cr. Projected benefit obligation Pension asset/liability Prior service cost Net gain or loss (debit) 87,000 88,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. $112,000 Service cost Settlement rate, 9%; expected return rate, 10% Actual return on plan assets Amortization of prior service cost 40,000 25,000 Contributions 142,000 83,000 Benefits paid retirees Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Cullumber Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) Annual Pension Expense Items Cash Using the preceding data, compute pension expense for Cullumber Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) Annual Pension Expense Items Cash Balance, Jan. 1. 2020 $ TA $ Service cost 112,000 Dr. V Interest cost 61,830 Dr. Actual return 40,000 Cr. V Unexpected loss 1930 Dr. > 142,000 Cr. Benefits Journal entry for 2020 $ 160760 Dr. $ 142,000 Cr. $ 216000 Cr. 25,000 Cr. Dr. $ 62,000 Dr. $ 86070 Cr. $ 207,830 Cr. Use the market-related asset value to compute the expected return and for corridor amortization. Using the preceding data, compute pension expense for Cullumber Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) Memo Record Penison Asset/ Liability Projected Benefit Obligation Plan Assets 216000 Cr. $ 687000 Cr. 112.000 Cr. 142,000 Cr. 99,000 Dr. Dr. 207,830 Cr. $ 777830 Cr.Step by Step Solution
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