Headland 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 $56,300.

2.

The companys funding policy requires a contribution to the pension trustee amounting to $135,896 for 2020.

3.

As of January 1, 2020, the company had a projected benefit obligation of $893,700, an accumulated benefit obligation of $797,700, and a debit balance of $397,600 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $595,500 at the beginning of the year. The actual and expected return on plan assets was $54,500. The settlement rate was 8%. No gains or losses occurred in 2020 and no benefits were paid.

4.

Amortization of prior service cost was $50,300 in 2020. Amortization of net gain or loss was not required in 2020.

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

Prepare the journal entry or entries to record pension expense and the employers 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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Headland Company for the year 2020.

Headland Company Income Statement (Partial) choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
select an income statement item DividendsExpensesNet Income / (Loss)Retained Earnings January 1, 2017Retained Earnings December 31, 2017RevenuesTotal ExpensesTotal Revenues
select an income statement item Amortization of PSCInterest ExpensePension ExpenseRent ExpenseService Cost		$enter a dollar amount

Headland Company Comprehensive Income Statement choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
select a comprehensive income item DividendsExpensesNet Income / (Loss)Retained Earnings January 1, 2017Retained Earnings December 31, 2017RevenuesTotal ExpensesTotal Revenues		$XXXX
select an opening section name Amortization of PSCComprehensive IncomeInterest ExpensePension ExpenseRent ExpenseService CostOther Comprehensive Income
select a comprehensive income item Amortization of PSCComprehensive IncomeInterest ExpensePension ExpenseRent ExpenseService CostOther Comprehensive Income		enter a dollar amount
select a closing name for this statement		$XXXX

Headland Company Balance Sheet (Partial) choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
select an opening name for section one Current AssetsIntangible AssetsLong-term InvestmentsLiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal Long-term InvestmentsTotal Property, Plant and EquipmentTotal Stockholders' Equity
select a balance sheet item Accounts PayableAccounts ReceivableAccumulated DepreciationAccumulated Other Comprehensive Income (PSC)Accumulated Other Comprehensive Loss (PSC)Common StockPension LiabilityRetained Earnings			$enter a dollar amount
select an opening name for section two Current AssetsIntangible AssetsLong-term InvestmentsLiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal Long-term InvestmentsTotal Property, Plant and EquipmentTotal Stockholders' Equity
select a balance sheet item Accounts PayableAccounts ReceivableAccumulated DepreciationAccumulated Other Comprehensive Income (PSC)Accumulated Other Comprehensive Loss (PSC)Common StockPension LiabilityRetained Earnings			$enter a dollar amount