Question 3 Not complete Marked out of 121.00 P Flag question Preparing Pension Journal Entries and Pension Worksheet Laker Company has a noncontributory defined benefit pension plan. The company must record its pension expense for the year ended December 31, 2020. The following data are available. Activity 2020 Service cost $120,000 Interest cost (at 8%) 96,000 Loss on PBO due to actuarial changesdetermined Dec. 31, 2020 40,000 Pension benefit paid to retirees 400,000 Actual return on plan assets 72,000 Employer contributions 240,000 Pension benefits paid 400,000 Account Balances Jan 1, 2020 Accumulated OCIPrior Service Cost $144,000 Dr. Accumulated OCIPension Gain/Loss 16,000 Dr. Projected Benefit Obligation 1,200,000 Cr. Plan Assets 800,000 Dr. Other Average remaining service period 10 years Expected return on plan assets 10% Pension Worksheet Journal Entries a. Create a worksheet to summarize the pension data at the end of 2020. Assume that Laker uses the corridor approach in amortizing any pension gain/loss. Note: Round your answers to the nearest whole dollar. Reported Net in Financial Statements Reported on Balance Sheet Accumulated OCI Net Pension Prior Pension Asset/Liability Service Cost Gain/Loss Reported in Comprehensive Income OCI Pension Prior Pension Expense Service Cost Gain/Loss Plan Assets Cash Outflow PBO Balance, January 1, 2020 Service cost Interest cost Expected return Unexpected loss on plan assets Actuarial loss on PBO Prior service cost amortization Contributions to fund Benefit payments Balance, December 31, 2020 ta TA Check Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: Round your answers to the nearest whole dollar. Date Account Name Dr. cr. Dec. 31, 2020 To record pension expense Dec. 31, 2020 To record deferral of unexpected loss on plan assets Dec. 31, 2020 To record deferral of actuarial loss on PBO Dec. 31, 2020 To record plan funding Dec. 31, 2020 To record benefits paid Question 3 Not complete Marked out of 121.00 P Flag question Preparing Pension Journal Entries and Pension Worksheet Laker Company has a noncontributory defined benefit pension plan. The company must record its pension expense for the year ended December 31, 2020. The following data are available. Activity 2020 Service cost $120,000 Interest cost (at 8%) 96,000 Loss on PBO due to actuarial changesdetermined Dec. 31, 2020 40,000 Pension benefit paid to retirees 400,000 Actual return on plan assets 72,000 Employer contributions 240,000 Pension benefits paid 400,000 Account Balances Jan 1, 2020 Accumulated OCIPrior Service Cost $144,000 Dr. Accumulated OCIPension Gain/Loss 16,000 Dr. Projected Benefit Obligation 1,200,000 Cr. Plan Assets 800,000 Dr. Other Average remaining service period 10 years Expected return on plan assets 10% Pension Worksheet Journal Entries a. Create a worksheet to summarize the pension data at the end of 2020. Assume that Laker uses the corridor approach in amortizing any pension gain/loss. Note: Round your answers to the nearest whole dollar. Reported Net in Financial Statements Reported on Balance Sheet Accumulated OCI Net Pension Prior Pension Asset/Liability Service Cost Gain/Loss Reported in Comprehensive Income OCI Pension Prior Pension Expense Service Cost Gain/Loss Plan Assets Cash Outflow PBO Balance, January 1, 2020 Service cost Interest cost Expected return Unexpected loss on plan assets Actuarial loss on PBO Prior service cost amortization Contributions to fund Benefit payments Balance, December 31, 2020 ta TA Check Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: Round your answers to the nearest whole dollar. Date Account Name Dr. cr. Dec. 31, 2020 To record pension expense Dec. 31, 2020 To record deferral of unexpected loss on plan assets Dec. 31, 2020 To record deferral of actuarial loss on PBO Dec. 31, 2020 To record plan funding Dec. 31, 2020 To record benefits paid
