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let me know if additional answers are needed. the problem gets long and im trying to save space. Carla Co. has the following defined benefit
let me know if additional answers are needed. the problem gets long and im trying to save space.
Carla Co. has the following defined benefit pension plan balances on January 1, 2020. $4,632,000 Projected benefit obligation Fair value of plan assets 4,632,000 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 $594,000 are created. Other data related to the pension plan are: 2020 2021 Service cost $152,000 $172.000 0 Prior service cost amortization 89.000 198.000 184,000 Contributions (funding) to the plan 220,000 281,000 Benefits paid 252.000 349,000 Actual return on plan assets 9.77 125 Items Annual Pension Expense Cash Balance, Jan 1, 2020 Service cost $152,000 Dr. Interest cost 463,200 Dr. Actual return 252,000 Cr Unexpected loss 25,920 Dr. Contributions $198,000 Cr Benefits $337.280 Dr. $198.000 CF Journal entry for 2020 Accumulated OCI Dec 31, 2019 Balance, Dec 31, 2020 OCI-Prior Service Cost OCI-Gain/ Loss Pension Asset Liability $25.920 Dr. $165.200 CE 25,920 Dr. 0 $165.200 CP $25,920 Dr. Projected Benefit Obligation Plan Assets $4,632,000 Cr. $4,632,000 Dr. 152,000 Cr. 463,200 Cr. 252,000 Dr. 198,000 Dr. 220,000 Dr. 220,000 Cr. 5,027,200 Cr. 4,862,000 Dr. Accumulated OCI Dec 31, 2019 Balance, Dec 31, 2020 Additional PSC, 1/1/2021 Balance, Jan. 1, 2021 Service cost Interest cost Actual return Unexpected loss Amortization of PSC Amortization of PSC Contribution Benefits Journal entry for 2021 $ $ Accumulated OCI, Dec. 31, 2020 Balance, Dec 31, 2021 Step by Step Solution
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