Question
Buffalo Company received the following selected information from its pension plan trustee concerning the operation of the companys defined benefit pension plan for the year
Buffalo Company received the following selected information from its pension plan trustee concerning the operation of the companys defined benefit pension plan for the year ended December 31, 2020.
January 1, 2020 | December 31, 2020 | ||||
Projected benefit obligation | $1,529,000 | $1,554,000 | |||
Market-related and fair value of plan assets | 789,000 | 1,121,900 | |||
Accumulated benefit obligation | 1,622,000 | 1,742,700 | |||
Accumulated OCI (G/L)Net gain | 0 | (202,900 | ) |
The service cost component of pension expense for employee services rendered in the current year amounted to $75,000 and the amortization of prior service cost was $120,700. The companys actual funding (contributions) of the plan in 2020 amounted to $254,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,207,000 on January 1, 2020. Assume no benefits paid in 2020.
The first two images have the correct answers, but I need help filling in the financial statements. Thanks!
Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension Expense Service Cost $ TA 75000 Interest on Projected Benefit Obligation 152900 Expected Return on Plan Assets (78900) Amortization of Prior Service Cost 120700 269700 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Pension Expense 269700 Pension Asset/Liability 307900 Cash 254000 Other Comprehensive Income (PSC) 120700 Other Comprehensive Income (G/L) 202900 (To record pension expense and employer's contribution) Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Buffalo Company for the year 2020. Buffalo Company Income Statement (Partial) For the Year Ended December 31, 2020 Pension Expense $ 269700 $ Buffalo Company Comprehensive Income Statement For the Year Ended December 31, 2020 $XXXX $ $XXXX Buffalo Company Balance Sheet (Partial) For the Year Ended December 31, 2020 Liabilities $ > Stockholders' EquityStep by Step Solution
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