Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please provide your working process Sandhill Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the
Please provide your working process
Sandhill 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. 2021 Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 2020 $597,000 406,600 190,400 Cr. 161,100 39,900 10% 10% 36,300 70,500 96,900 31,300 87,400 721,900 $58,800 10 % 10 % 61,100 50,300 80,900 53,800 0 788,400 20 years 461,900 Annual Pension Expense General Journal Entries OCI-Prior Service Cost OCI- Gain/ Loss Pension Asset/ Liability Items Balance, Jan. 1, 2020 Service cost 39.900 Dr Interest cost 59700 Dr Actual return 36,300 Unexpected loss 4360 Amortization of PSC 63300 Dr Contributions Benefits Increase in PBO Journal entry for 2020 Accumulated OCI, Dec 31, 2019 Balance, Dec 31, 2020 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 Memo Record Projected Benefit Obligation Plan Assets Calculate the amortization of the loss (2021) using the corridor approach. Amortization of the loss $ e Textbook and Media List of Accounts Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (Round answers to required, select "No Entry" for the account titles and enter Ofor the amounts.) Debit Credit Date Account Titles and Explanation Dec 31, 2020 Dec 31, 2021 e Textbook and Media List of Accounts For 2021, indicate the pension amounts reported in the financial statements. (Round answers to decimal places, e.g. 5,125.) Sandhill Company Income Statement (Partial) Sandhill Company Comprehensive Income Statement $ XX $ XXX Sandhill Company Partial Balance SheetStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started