Monty Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation $4,623,000 Fair value of plan assets 4,623,000 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 $603,000 are created. Other data related to the pension plan are: 2020 2021 Service cost $149,000 $170,000 Prior service cost amortization 0 90,000 Contributions (funding) to the plan 199,000 184,000 Benefits paid 217,000 277,000 Actual return on plan assets 250,000 346,000 Expected rate of return on assets 6 % 8 %

Prepare a pension worksheet for 2021. (Enter all amounts as positive.)

MONTY COMPANY Pension Worksheet2020 and 2021

General Journal Entries

Memo Record

Items

Annual Pension Expense

Cash

OCIPrior Service Cost

OCI Gain/ Loss

Pension Asset/ Liability

Projected Benefit Obligation

Plan Assets

Balance, Jan. 1, 2020

$4,623,000

Cr.

$4,623,000

Dr.

Service cost

$149,000

Dr.

149,000

Cr.

Interest cost

462,300

Dr.

462,300

Cr.

Actual return

250,000

Cr.

250,000

Dr.

Unexpected loss

27,380

Dr.

$27,380

Dr.

Contributions

$199,000

Cr.

199,000

Dr.

Benefits

217,000

Dr.

217,000

Cr.

Journal entry for 2020

$333,920

Dr.

$199,000

Cr.

27,380

Dr.

$162,300

Cr.

Accumulated OCI Dec. 31, 2019

0