Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help on this. I don't know if I got it right. Shamrock Co. has the following defined benefit pension plan balances on January 1,

Need help on this. I don't know if I got it right.

Shamrock Co. has the following defined benefit pension plan balances on January 1, 2020.

Projected benefit obligation $4,558,000
Fair value of plan assets 4,558,000

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:

image text in transcribed

image text in transcribed

image text in transcribed

2020 $ 151,000 Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 201,000 219,000 251,000 6 2021 $172,000 90,000 185,000 280,000 348,000 8 % % SHAMROCK COMPANY Pension Worksheet-2020 General Journal Entries OCI-Prior OCI, Gain/ Service Cost Loss Annual Pension Expense Items Balance, Jan. 1, 2020 Service cost Interest cost 151,000 Dr. 455,800 Dr. 251,000 Cr. Actual return Unexpected loss 201,000 Cr. Contributions Benefits Journal entry for 2020 355,800 Dr. 201,000 Cr. Accumulated OCI Dec. 31, 2019 Balance, Dec. 31, 2020 Click if you would like to show Work for this question: Open Show Work Pension Asset/ Liability o Memo Record Projected Benefit Obligation 4,558,000 Cr. s 151,000 Cr. 455,800 Cr. Plan Assets 4,558,000 Dr. Cr. 251,000 Dr. 201,000 Dr. 219,000 Dr. " 4,945,800 Cr. s

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Fraud Audit Responding To The Risk Of Fraud In Core Business Systems

Authors: Leonard W. Vona

1st Edition

0470647264, 978-0470647264

More Books

Students also viewed these Accounting questions

Question

5. Explain how to conduct an appraisal feedback interview.

Answered: 1 week ago

Question

2. Answer the question, Who should do the appraising?

Answered: 1 week ago