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On January 1, 2020, Nash Company has the following defined benefit pension plan balances. Projected benefit obligation $4,455,000 Fair value of plan assets 4,270,000 The

On January 1, 2020, Nash Company has the following defined benefit pension plan balances.

Projected benefit obligation $4,455,000

Fair value of plan assets 4,270,000 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 $504,000 are created. Other data related to the pension plan are as follows.

2020 2021 Service cost $147,000 $183,000

Prior service cost amortization 0 91,000

Contributions (funding) to the plan 244,000 280,000

Benefits paid 203,000 283,000

Actual return on plan assets 256,200 260,000

Expected rate of return on assets 6 % 8 %

a.) Prepare a pension worksheet for the pension plan for 2020 and 2021.

image text in transcribed

b.) For 2021, prepare the journal entry to record pension-related amounts.

Items Annual Pension Expense Cash $ > >

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