Question
At the end of 2019, Torrin Company had the following balances in its pension related accounts: Plan assets$4,020,000 Project benefit obligation 6,795,000 Unamortized PSC in
At the end of 2019, Torrin Company had the following balances in its pension related accounts:
Plan assets$4,020,000
Project benefit obligation 6,795,000
Unamortized PSC in AOCI540,000Unamortized net gain/loss in AOCI810,000 (gain)
As a result of the operation of the plan during 2020, the following additional information is provided by the actuary for 2020:
Service cost$1,260,000
Settlement (interest) rate9%
Actual return on plan assets 450,000
Expected return on plan assets360,000
Unexpected gain from decrease in PBO
due to change in actuarial predictions 150,000
Contribution to plan 600,000
Benefits paid to retirees390,000
Amortization of PSC60,000
Remaining service life of employees10 yrs.
A plan amendment was adopted on 12/31/20 that increased
future retirement obligations and resulted in additional PSC800,000
REQUIRED: Complete the following pension worksheet for 2020 in good form. Do not record the journal entry for pensions.
Unamor. net
PensionPension asset/liabilityUnamortizedgain/loss
ExpenseCashPBOPlan assetsPSC in AOCIin AOCI
Bal. 1/1/20- -
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