Problem 20-02 (Part Level Submission)

Crane Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $197,700; projected benefit obligation $254,000. Other data relating to 3 years operation of the plan are as follows.

		2019			2020			2021
Annual service cost		$15,800			$18,800			$25,900
Settlement rate and expected rate of return		10	%		10	%		10	%
Actual return on plan assets		18,300			21,810			24,500
Annual funding (contributions)		15,800			40,800			48,900
Benefits paid		13,700			16,700			20,600
Prior service cost (plan amended, 1/1/20)					157,900
Amortization of prior service cost					54,900			42,400
Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of:								529,000

(a)

	Your answer is partially correct. Try again.

Prepare a pension worksheet presenting all 3 years pension balances and activities.

Annual Pension Expense Cash OCI-Prior Service Cost OCI-Gain/ Loss Pension Asset/ Liability 56300 Projected Benefit Obligation 2540000 Cr. Plan Assets Balance, Jan 1, 2019 1977000 Dr. Service cost 15800 Dr. 15800 Cr. Interest cost 25400 Dr. 25400 Cr. Actual retum 18300 Dr. 18300 Cr. 1470 Cr. 1470 Dr. Unexpected loss Contributions F 15800 Cr. Benefits 13700 Dr. 13700 Cr. Journal entry for 2019 21430 Dr. 15800 Cr. 15800 Dr. Accumulated OCI, Dec. 31, 2018 13700 Dr. 13700 Cr. Balance, Dec 31, 2019 1470 Dr. 7100 Cr. 2567500 Cr. 1997400 Dr. Additional PSC, 1/1/2020 1579000 Dr. 1579000 Cr. Balance, Jan 1, 2020 1470 Dr. 63400 Cr.. 4146500 Cr. IL Service cost 18800 Cr. 18800 Dr. 43940 Dr. Interest cost 43940 Cr. D Actual retum 21810 Cr. OOOOOOOOO 21810) Dr. Amortization of PSC 54900 Dr. 54900 Cr.. Contributions 0000000002 0@101000000 DO 1000000 40800C 40800 Dr. 000000000D DOM01000000 00000000000 E F Benefits 16700 Dr. 16700C Journal entry for 2020 95830 | Dr. 40800CC 1524100 Dr. 1660730 Cr. Accumulated OCI, Dec 31, 2019 Balance, Dec 31, 2020 OOOOOOOOOOO O O OBELEDDOO BO220 1524100 Dr. 1470 Dr. 1724130 Cr. 4192540 Cr. OOOOOOOOOOO BOOZOCOBBBB BB 2043310 Dr. E 0000000000000000000 Service cost 25900 Dr. 25900 Cr. E Interest cost 41925 Dr. 41925 Cr. Actual return 24500 Cr. 24500 Dr. Unexpected loss 1798 Cr. 1798 Dr. Amortization of PSC 42400 Dr. OOOOOOOOO 42400 Cr.. 42400 Dr. Contributions 48900 Cr. Benefits Liability gain 20600 Dr. 20600 Cro Journal entry for 2021 83927 Dr. 48900 Cr. 42400 Cr. Accumulated OCI, Dec. 31, 2020 1524100 Dr. 1470 Dr. Balance, Dec. 31, 2021 1481700 Dr. 2089610 Dr