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

Projected benefit obligation$4,571,000

Fair value of plan assets4,210,000

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 $492,000 are created. Other data related to the pension plan are as follows.

2020

2021

Service cost

$152,000 $179,000

Prior service cost amortization

0 89,000

Contributions (funding) to the plan

236,000 285,000

Benefits paid

198,000 275,000

Actual return on plan assets

252,600 261,000

Expected rate of return on assets

6% 8%

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

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