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On January 1, 2020, Windsor Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,485,000 4,240,000 The
On January 1, 2020, Windsor Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,485,000 4,240,000 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 $494,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $148,000 $177,000 Prior service cost amortization 0 90,000 Contributions (funding) to the plan 244,000 288,000 Benefits paid 200,000 275,000 Actual return on plan assets 254,400 260,000 Expected rate of return on assets 6 % 8 % For 2021, prepare the journal entry to record pension-related amounts. (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.) Account Titles and Explanation Debit Credit
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