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Carpenter Company adopted a defined benefit pension plan for its employees on January 1, 2019 At the time of adoption, the pension contract provided for
Carpenter Company adopted a defined benefit pension plan for its employees on January 1, 2019 At the time of adoption, the pension contract provided for roadive benefits for the company's ve benefits resulted in a prior service cost of $1,860.000 that created a projected benefit obligation of the same amount on that date. Carpenter decided to amortze the prior servic service ife of the employees. The following additional information is also available for 2019 and 2000 (1) discount rate for both 2019 and 2000: %) company contion unded (2018 rate of return on plan assets: 9%; (4) actual rate of return on plan assets, 10% ( service cost: 2019, $257,000, 2020, $264,000, and plan asses 110019, 0 Carpenter a per comidor approach to amortas gains or losses. There are no other components of Carpenter's pension expense. Ignore any adjustment of accumulated other comprehensive income Required: Prepare a pension plan worksheet that includes the calculation of Carpenter's pension expense for 2019 and 2000, the reconollation of the beginning and ending projected beneft obligation for 2019 and 2020, the reconciliation of the beginning and ending plan assets for 2019 and 2020, and the joumal entry to record the pension expense at the end of 2019 and 2020, indicating whether each component is a debit or credit Carpenter Company adopted a defined beneft pension plan for its employees on January 1, 2019. At the time of adoption, the pension contract provided for retroactive benefits for the company's a picating en benefits resulted in a prior service cost of $1,800.000 that created a projected beneft obligation of the same amount on that date. Carpenter decided to amortize the prior service cost by the straigh service life of the employees. The following additional information is also available for 2019 and 2020 (1) discount rate for both 2019 and 2020: 8% (2) company contribution (funded 1201) 201 rate of retum on plan assets: % (4) actual rate of retum on plan assets, 10%: (5) service cost: 2018, 8257,000: 2020, $264,000; and (6) plan assets: 1/1/2018, 50 Carpenter paid pension benefits comidor approach to amorize gains or losses. There are no other components of Carpenter's pension expense. Ignore any adjustment of accumulated other comprehensive income Required: Prepare a pension plan worksheet that includes the calculation of Carpenter's pension expense for 2019 and 2000, the reconciliation of the beginning and ending projected benefit obligation for 2018 and 2000, the reconollation of the beginning and ending plan assets for 2019 and 2000, and the joumal entry to record the pension expense at the end of 2019 and 2020, indicating whether each component is a debit or credit a000 pongam Carpenter s the Carpenter Company adopted a defined benefit pension plan for its employees on January 1, 2019. At the time of adoption, the pension contract provided for retroactive benefits for the company's active participating employees. These retroactive benefits resulted in a prior service cost of $1,860,000 that created a projected benefit obligation of the same amount on that date. Carpenter decided to amortize the prior service cost by the straight-line method over the 20-year average remaining service life of the employees. The following additional information is also available for 2019 and 2020: (1) discount rate for both 2019 and 2020: 8 %; (2) company contribution (funded 12/31): 2019, $550,000; 2020, $530,000; (3) expected long-term rate of return on plan assets: 9%; (4) actual rate of return on plan assets, 10%; (5) service cost: 2019, $257,000; 2020, $264,000; and (6) plan assets: 1/1/2019, $0. Carpenter paid pension benefits of $30,000 each year. Carpenter uses the corridor approach to amortize gains or losses. There are no other components of Carpenter's pension expense. Ignore any adjustment of accumulated other comprehensive income. Required: Prepare a pension plan worksheet that includes the calculation of Carpenter's pension expense for 2019 and 2020, the reconciliation of the beginning and ending projected benefit obligation for 2019 and 2020, the reconciliation of the beginning and ending plan assets for 2019 and 2020, and the journal entry to record the pension expense at the end of 2019 and 2020, indicating whether each component is a debit or credit
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