Question 10

Sheridan Company provides the following information about its defined benefit pension plan for the year 2020.

Service cost		$89,800
Contribution to the plan		107,000
Prior service cost amortization		10,700
Actual and expected return on plan assets		65,200
Benefits paid		40,100
Plan assets at January 1, 2020		647,500
Projected benefit obligation at January 1, 2020		707,800
Accumulated OCI (PSC) at January 1, 2020		147,500
Interest/discount (settlement) rate		9	%

1. Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020. (Enter all amounts as positive.)

2. Prepare the journal entry recording pension expense. (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.)