Exercise 20-11 (Part Level Submission) Larkspur Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,800. 2. The company's funding policy requires a contribution to the pension trustee amounting to $137,228 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $899, 100, an accumulated benefit obligation of $797,300, and a debit balance of $393,900 in accumulated OCI (PSC). The fair value pension plan assets amounted to $597,300 at the beginning of the year. The actual and expected return on plan assets was $54,000. The settlement rate was 8%. No gains or losses occurred in 2020 and no benefits were pald. 4. Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020. (a) Your answer is correct. 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 1 Service Cost 55,800 Interest on Projected Benefit Obligation Expected Return on Plan Assets 71,928 (54000) 50500 Amortization of Prior Service Cost Pension Expense 124,228 (b) Prepare the journal entry or entries to record pension expense and the employer's contribution to the pension trustee 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 List Of Accounts Exercise 20-11 (Part Level Submission) Accumulated Depreciation Accumulated Other Comprehensive Income Actuarial Loss on Defined Benefit Plan Cash Common Stock Cost of Goods Sold Depreciation Expense Interest Expense Inventory Notes Payable Other Comprehensive Income (G/L) Other Comprehensive Income (PSC) Pension Asset/Liability Pension Expense Plant and Equipment Postretirement Asset/ Liability Postretirement Expense Retained Earnings Salary Expense Sales