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| Problem 20-08 Sheffield Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021. | | | 2020 | | 2021 | | Projected benefit obligation, January 1 | | $596,300 | | | | | | Plan assets (fair value and market-related value), January 1 | | 412,100 | | | | | | Pension asset/liability, January 1 | | 184,200 | Cr. | | | | | Prior service cost, January 1 | | 159,600 | | | | | | Service cost | | 39,600 | | | $58,900 | | | Settlement rate | | 10 | % | | 10 | % | | Expected rate of return | | 10 | % | | 10 | % | | Actual return on plan assets | | 36,000 | | | 60,900 | | | Amortization of prior service cost | | 70,200 | | | 50,000 | | | Annual contributions | | 97,600 | | | 81,800 | | | Benefits paid retirees | | 31,600 | | | 52,030 | | | Increase in projected benefit obligation due to changes in actuarial assumptions | | 86,400 | | | 0 | | | Accumulated benefit obligation at December 31 | | 720,800 | | | 782,400 | | | Average service life of all employees | | | | | 20 years | | | Vested benefit obligation at December 31 | | | | | 461,400 | | | | |  |
Prepare a pension worksheet presenting both years 2020 and 2021.
Prepare a pension worksheet presenting both years 2020 and 2021. (Round answers to o decimal places, e.g. 5,125. Enter all amounts as positive.) SHEFFIELD COMPANY Pension Worksheet-2020 and 2021 General Journal Entries OCI-Prior OCI, Gain/ Service Cost Loss Annual Pension Expense Cash Pension Asset/ Liability Plan Assets Items Balance, Jan. 1, 2020 Service cost 184,200 Cr. 7 Memo Record Projected Benefit Obligation 596,300 Crys 39,600 Cr. 59,630 Cr. 412,100 Dr Interest cost Actual return 39,600 Dr 59,630 Dr 7 36,000 Cr. 5,210 Cr. 7 70,200 Dry 36,000 Dr 5,210 Dr 7 70,200 Cr. 97,600 Cr. 7 97,600 Dr 31,600 Cr. Unexpected loss Amortization of PSC Contributions Benefits Increase in PBO Journal entry for 2020 s Accumulated OCI, Dec. 31, 2019 Balance, Dec. 31, 2020 31,600 Dr 86,400 Cr. 86,400 Dr 91,510 Dr 1 28,220 Drs 97,600 Cr. 52,030 Cr. 7 70,200 Cr.V 159,600 Dr 89,400 Dr 91,610 Dr 236,230 Cr. 514,100 Dr 7 750,330 Cr. V 58,900 Cr. 75,033 Cr.V 60,900 Dr 58,900 Dr 75,033 Dr 60,900 Cr V 9,490 Dr 7 50,000 Dr 7 829 Dry 9,490 Cr. 7 Service cost Interest cost Actual return Unexpected gain Amortization of PSC Amortization of loss Contributions Benefits Journal entry for 2021 Accumulated OCI, Dec 31, 2020 Balance, Dec. 31, 2021 50,000 Cr. 829 Cr. 7 81,800 Cr. 81,800 Dr 52,030 Cr. V 52,030 Dr 133,352 Dr 7 s 81,800 Cr. 8,767 Dr 50,000 Cr. 89,400 Dr I 39,400 Drns 10,319 Cr.V 91,610 Dry 81,291 Drs 227,463 Cr. s 832,233 cr. 604,770 Dr 7 Calculate the amortization of the loss (2021) using the corridor approach. Amortization of the loss s For 2021, indicate the pension amounts reported in the financial statements. (Round answers to o decimal places, e.g. 5,125.) Sheffield Company Income Statement (Partial) For the Year Ended December 31, 2021 Pension Expense Sheffield Company Comprehensive Income Statement For the Year Ended December 31, 2021 Net Income / (Loss) Comprehensive Income (Loss) Asset Gain (Loss) $ 9,490 $ XXX Amortization of Loss 829 Prior Service Cost Amortization 50,000 $ - 60,319 $ XXX Comprehensive Income (Loss) Sheffield Company Partial Balance Sheet December 31, 2021 Liabilities Pension Liability 227,463 Stockholders' Equity 39,400 Accumulated Other Comprehensive Income (PSC) $ Accumulated Other Comprehensive Income (G/L) Click if you would like to Show Work for this question: Open Show Work 81,291 Prepare a pension worksheet presenting both years 2020 and 2021. (Round answers to o decimal places, e.g. 5,125. Enter all amounts as positive.) SHEFFIELD COMPANY Pension Worksheet-2020 and 2021 General Journal Entries OCI-Prior OCI, Gain/ Service Cost Loss Annual Pension Expense Cash Pension Asset/ Liability Plan Assets Items Balance, Jan. 1, 2020 Service cost 184,200 Cr. 7 Memo Record Projected Benefit Obligation 596,300 Crys 39,600 Cr. 59,630 Cr. 412,100 Dr Interest cost Actual return 39,600 Dr 59,630 Dr 7 36,000 Cr. 5,210 Cr. 7 70,200 Dry 36,000 Dr 5,210 Dr 7 70,200 Cr. 97,600 Cr. 7 97,600 Dr 31,600 Cr. Unexpected loss Amortization of PSC Contributions Benefits Increase in PBO Journal entry for 2020 s Accumulated OCI, Dec. 31, 2019 Balance, Dec. 31, 2020 31,600 Dr 86,400 Cr. 86,400 Dr 91,510 Dr 1 28,220 Drs 97,600 Cr. 52,030 Cr. 7 70,200 Cr.V 159,600 Dr 89,400 Dr 91,610 Dr 236,230 Cr. 514,100 Dr 7 750,330 Cr. V 58,900 Cr. 75,033 Cr.V 60,900 Dr 58,900 Dr 75,033 Dr 60,900 Cr V 9,490 Dr 7 50,000 Dr 7 829 Dry 9,490 Cr. 7 Service cost Interest cost Actual return Unexpected gain Amortization of PSC Amortization of loss Contributions Benefits Journal entry for 2021 Accumulated OCI, Dec 31, 2020 Balance, Dec. 31, 2021 50,000 Cr. 829 Cr. 7 81,800 Cr. 81,800 Dr 52,030 Cr. V 52,030 Dr 133,352 Dr 7 s 81,800 Cr. 8,767 Dr 50,000 Cr. 89,400 Dr I 39,400 Drns 10,319 Cr.V 91,610 Dry 81,291 Drs 227,463 Cr. s 832,233 cr. 604,770 Dr 7 Calculate the amortization of the loss (2021) using the corridor approach. Amortization of the loss s For 2021, indicate the pension amounts reported in the financial statements. (Round answers to o decimal places, e.g. 5,125.) Sheffield Company Income Statement (Partial) For the Year Ended December 31, 2021 Pension Expense Sheffield Company Comprehensive Income Statement For the Year Ended December 31, 2021 Net Income / (Loss) Comprehensive Income (Loss) Asset Gain (Loss) $ 9,490 $ XXX Amortization of Loss 829 Prior Service Cost Amortization 50,000 $ - 60,319 $ XXX Comprehensive Income (Loss) Sheffield Company Partial Balance Sheet December 31, 2021 Liabilities Pension Liability 227,463 Stockholders' Equity 39,400 Accumulated Other Comprehensive Income (PSC) $ Accumulated Other Comprehensive Income (G/L) Click if you would like to Show Work for this question: Open Show Work 81,291
