Headland Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021 2021 Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 2020 $594,100 407,700 186.400 Cr. 159,600 40,200 10 % 10 % 36,200 69.500 96,400 31,600 87,000 720,800 $59,200 10 96 10 % 61,600 49.700 81,400 54,010 0 789,000 20 years 465,700 New Tab quanative varible. peinciples of statt. Connect web addr... work-P8 -/30 estion 1 of 1 Annual Pension Expense Cash Items 0 $ D Balance, Jan. 1.2020 Service cost 40200 Dr Interest cost 59410 Dr 36200 Actual return Cr. 4570 Cr. Unexpected loss 69500 Dr Amortization of PSC 0 96400 CE Contributions o Benefits 0 Increase in PBO 128430 $ Dr $ 96400 Cr Journal entry for 2020 Accumulated OCI. Dec 31, 2019 Balance, Dec 31, 2020 Service cost Interest cost Actual return Unexpected gain Amortization of PSC Amortization of loss Contributions Benefits Journal entry for 2021 BE 10 W stion 1 of 1 -/30 HEADLAND COMPANY Pension Worksheet-2020 and 2021 General Journal Entries OCI-Prior OCI-Gain/ Service Cost Loss 0 $ Cash $ 0 $ > $ > 0 > 69500 Cr Or 69500 Dr 91570 $ Cr ) > > > Memo Record Pension Asset/ Liability Plan Assets Projected Benefit Obligation 594100 $ $ 186400 Cr. Cr. 407.700 > > > > 5 > > > > > > > > > 5 > C > $ Calculate the amortization of the loss (2021) using the corridor approach. Amortization of the loss $ e Textbook and Media List of Accounts Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (Round answers to decimal places, eg. 5,125. 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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31. 2020 Dec. 31. 2021 e Textbook and Media List of Accounts Headland Company Income Statement (Partial) $ Headland Company Comprehensive Income Statement $ XXX $ $XXX Headland Company Partial Balance Sheet > $ $ $ > 0 > 69500 Cr Or 69500 Dr 91570 $ Cr ) > > > Memo Record Pension Asset/ Liability Plan Assets Projected Benefit Obligation 594100 $ $ 186400 Cr. Cr. 407.700 > > > > 5 > > > > > > > > > 5 > C > $ Calculate the amortization of the loss (2021) using the corridor approach. Amortization of the loss $ e Textbook and Media List of Accounts Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (Round answers to decimal places, eg. 5,125. 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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31. 2020 Dec. 31. 2021 e Textbook and Media List of Accounts Headland Company Income Statement (Partial) $ Headland Company Comprehensive Income Statement $ XXX $ $XXX Headland Company Partial Balance Sheet > $ $
