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Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1
Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 Service cost Interest cost (5% discount rate) Gain from changes in actuarial assumptions in 2021 Benefits paid to retirees Balance, Dec. 31 Plan assets: Balance, Jan.1 Actual return (expected return was $22,100) Contributions Benefits paid Balance, Dec. 31 $236,000 37,000 11,800 (4,600) (16,000) $264,200 $246,000 20,000 31,000 (16,000) $281,000 ABO, Dec. 31 $240,600 January 1, 2021, balances: Prior service cost-AOCI (amortization $5,010/yr.) 5,010 Net gain-AOCI (amortization, if any, over 15 years) 50,100 There were no other relevant data. Required: 1. Calculate the 2021 pension expense. 2. Prepare the 2021 journal entries to record pension expense and funding. 3. Prepare any journal entries to record any 2021 gains or losses. Complete this question by entering your answers in the tabs below.
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