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On January 1, 2019, Barrik Company adopted a defined benefit pension plan. At that time. Baznik awarded retroactive benefits to certain employees. These retroactive benefits
On January 1, 2019, Barrik Company adopted a defined benefit pension plan. At that time. Baznik awarded retroactive benefits to certain employees. These retroactive benefits reue not fund). Baznik has six participating employees who are expected to receive the retroactive benefits. Following is a schedule that identhes the participating eyes a Employee Expected Years of Future Service A D C D E F Baznik decided to amortize the prior service cost to pension experise using the for 2010 and 2020 service method. The following are the amounts of the components of Bank's pension perser 2019 2020 Service cost $386,800 $410,683 Interest cost on projected benefit obligation 116,800 174,737 Expected return on plan assets 93,000 Baznik contributed $799,800 and $759,200 to the pension fund at the end of 2019 and 2020, respectively. Required: 1. Next Level Prepare a set of schedules for Baznik to determine (a) the amortization fraction for each year and (b) the amortization of the prior service cost. 2. Next Level Prepare all the journal entries related to Baznik's pension plan for 2019 and 2020. On January 1, 2019, Baznik Company adopted a defined benefit pension plan. At that time, Baznik awarded retroactive benefits to certain employees. These retroactive benefits resulted in a prior service cost of $1,290,000 on that date (which it did not fund). Baznik has six participating employees who are expected to receive the retroactive benefits. Following is a schedule that identifies the participating employees and their expected years of future service as of January 1, 2019: Employee Expected Years of Future Service A 1 3 4 55 6 BCDEF Baznik decided to amortize the prior service cost to pension expense using the years-of-future-service method. The following are the amounts of the components of Baznik's pension expense, in addition to the amortization of the prior service cost for 2019 and 2020: Baznik decided to amortize the prior service cost to pension expense using the years-of-future-service method. The following are the amounts of the components of Baznik's pension expense, in addition to the amortization of the prior service cost for 2019 and 2020: 2019 2020 Service cost $386,800 $410,683 Interest cost on projected benefit 116,800 174,737 obligation Expected return on plan assets A 93,000 Baznik contributed $799,800 and $759,200 to the pension fund at the end of 2019 and 2020, respectively. Required: 1. Next Level Prepare a set of schedules for Baznik to determine (a) the amortization fraction for each year and (b) the amortization of the prior service cost. 2. Next Level Prepare all the journal entries related to Baznik's pension plan for 2019 and 2020
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