Question
Problem 20-04 (Part Level Submission) Cheyenne Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020
Problem 20-04 (Part Level Submission)
Cheyenne Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.
2020 | 2021 | |||||
Plan assets (fair value), December 31 | $810,840 | $984,840 | ||||
Projected benefit obligation, January 1 | 812,000 | 928,000 | ||||
Pension asset/liability, January 1 | 162,400 | Cr. | ? | |||
Prior service cost, January 1 | 290,000 | 278,400 | ||||
Service cost | 69,600 | 104,400 | ||||
Actual and expected return on plan assets | 27,840 | 34,800 | ||||
Amortization of prior service cost | 11,600 | 13,920 | ||||
Contributions (funding) | 133,400 | 139,200 | ||||
Accumulated benefit obligation, December 31 | 580,000 | 638,000 | ||||
Interest/settlement rate | 9 | % | 9 | % |
Prepare the journal entries to record the pension expense and the companys funding of the pension plan for both years. (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 0 for the amounts.)
Date | Account Titles and Explanation | Debit | Credit |
Dec. 31, 2020 | |||
Dec. 31, 2021 | |||
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