Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Larkspur Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation Fair value of plan assets $4,619,000 4,619,000 The
Larkspur Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation Fair value of plan assets $4,619,000 4,619,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $595,000 are created. Other data related to the pension plan are: Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 2020 $ 151,000 0 201,000 220,000 253,000 6 % 2021 $169,000 89,000 186,000 283,000 347,000 8 % (a) Prepare a pension worksheet for the pension plan in 2020. (Enter all amounts as positive.) LARKSPUR COMPANY Pension Worksheet-2020 General Journal Entries OCI-Prior OCI - Gain/ Service Cost Loss Memo Record Annual Pension Expense Pension Asset/ Liability Projected Benefit Obligation Plan Assets Items Cash Balance, Jan. 1, 2020 $ $ Service cost Interest cost Actual return Unexpected loss Contributions I> Benefits Journal entry for 2020 $ Accumulated OCI Dec. 31, 2019 Balance, Dec. 31, 2020 Click if you would like to Show Work for this question: Open Show Work (b) The parts of this question must be completed in order. This part will be available when you complete the part above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started