Exercise 20 04 The following facts apply to the pension plan of Vaughn Inc for the year 2020 Plan assets, January 1, 2020 $525,500 Projected benefit obligation, January 1, 2020 525,500 Settlement rate 8 Service cost 36,800 Contributions (funding) 23,800 Actual and expected return on plan assets 49,800 Benefits paid to retirees 30,300 Using the preceding data, compute pension expense for the year 2020 As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year end balances in the related pension accounts (Enter all amounts as positive ) VAUGHN INC Pension Worksheet2020 General Journal Entries Memo Record Items Annual Pension Expense Cash Pension Asset Liability Projected Benefit Obligation Plan Assets Balance, January 1, 2020 $enter a net debit or credit balance select between debit and credit Dr Cr $enter a net debit or credit balance select between debit and credit Dr Cr $enter a net debit or credit balance select between debit and credit Dr Cr $enter a net debit or credit balance select between debit and credit Dr Cr $enter a net debit or credit balance select between debit and credit Dr Cr Service cost enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr Interest cost enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr Actual return enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr Contributions enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr Benefits enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr enter a dollar amount select between debit and credit Dr Cr Journal entry, December 31 $enter a net debit or credit amount select between debit and credit Dr Cr $enter a net debit or credit amount select between debit and credit Dr Cr enter a net debit or credit amount select between debit and credit Dr Cr enter a net debit or credit amount select between debit and credit Dr Cr enter a net debit or credit amount select between debit and credit Dr Cr Balance, December 31, 2020 $enter a net debit or credit balance select between debit and credit Dr Cr $enter a net debit or credit balance select between debit and credit Dr Cr $enter a net debit or credit balance select between debit and credit Dr Cr

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Exercise 20-04 The following facts apply to the pension plan of Vaughn Inc. for the year 2020. Plan assets, January 1, 2020 $525,500 Projected benefit

Exercise 20-04

The following facts apply to the pension plan of Vaughn Inc. for the year 2020.

Plan assets, January 1, 2020	$525,500
Projected benefit obligation, January 1, 2020	525,500
Settlement rate	8	%
Service cost	36,800
Contributions (funding)	23,800
Actual and expected return on plan assets	49,800
Benefits paid to retirees	30,300

Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.)

VAUGHN INC. Pension Worksheet2020
	General Journal Entries						Memo Record
Items	Annual Pension Expense		Cash		Pension Asset/ Liability		Projected Benefit Obligation		Plan Assets
Balance, January 1, 2020	$enter a net debit or credit balance	select between debit and credit Dr.Cr.	$enter a net debit or credit balance	select between debit and credit Dr.Cr.	$enter a net debit or credit balance	select between debit and credit Dr.Cr.	$enter a net debit or credit balance	select between debit and credit Dr.Cr.	$enter a net debit or credit balance	select between debit and credit Dr.Cr.
Service cost	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.
Interest cost	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.
Actual return	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.
Contributions	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.
Benefits	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.	enter a dollar amount	select between debit and credit Dr.Cr.
Journal entry, December 31	$enter a net debit or credit amount	select between debit and credit Dr.Cr.	$enter a net debit or credit amount	select between debit and credit Dr.Cr.	enter a net debit or credit amount	select between debit and credit Dr.Cr.	enter a net debit or credit amount	select between debit and credit Dr.Cr.	enter a net debit or credit amount	select between debit and credit Dr.Cr.
Balance, December 31, 2020					$enter a net debit or credit balance	select between debit and credit Dr.Cr.	$enter a net debit or credit balance	select between debit and credit Dr.Cr.	$enter a net debit or credit balance	select between debit and credit Dr.Cr.