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need the journal entry for this problem. Carla Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation Fair
need the journal entry for this problem.
Carla Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation Fair value of plan assets $4,632,000 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 Prior service cost amortization 0 89,000 Contributions (funding) to the plan 198,000 184,000 Benefits paid 220,000 281,000 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 $172,000 $152,000 0 89,000 198,000 184,000 Service cost Prior service cost amortization Contributions (funding) to the plan Benefits pald Actual return on plan assets Expected rate of return on assets 220,000 281.000 252,000 349,000 6 % 8 % Items Annual Pension Expense Cash Balance, Jan. 1, 2020 Service cost 152,000 Dr. Interest cost 463,200 Dr. Actual return 252.000 CH 25.920 Unexpected loss Cr 198,000 Dr. > 220,000 Cr 220,000 Dr. 165,200 Cr. Prepare any journal entries related to the pension plan that would be needed at December 31, 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 o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Other Comprehensive Income (G/L) Pension Expense Cash Pension Asset/Liability Step by Step Solution
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