Question
On January 1, 2020, Riverbed Company has the following defined benefit pension plan balances. Projected benefit obligation $4,488,000 Fair value of plan assets 4,230,000 The
On January 1, 2020, Riverbed Company has the following defined benefit pension plan balances.
| Projected benefit obligation | $4,488,000 | |
| Fair value of plan assets | 4,230,000 |
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 $499,000 are created. Other data related to the pension plan are as follows.
| 2020 | 2021 | |||||
|---|---|---|---|---|---|---|
| Service cost | $148,000 | $182,000 | ||||
| Prior service cost amortization | 0 | 88,000 | ||||
| Contributions (funding) to the plan | 236,000 | 280,000 | ||||
| Benefits paid | 202,000 | 275,000 | ||||
| Actual return on plan assets | 253,800 | 264,000 | ||||
| Expected rate of return on assets | 6 | % | 8 | % | ||
Prepare a pension worksheet for the pension plan for 2020 and 2021 and prepare the journal entry to record pension-related amounts for 2021.
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Intermediate Accounting 2007 FASB Update Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
12th Edition
0470128763, 978-0470128763
