Question 3 of 4 2/3 E Swifty Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,525,000 $1,553,000 Market-related and fair value of plan assets 794,000 1,124.400 Accumulated benefit obligation 1,605,000 1,724,400 Accumulated OCI (G/L)-Net gain 0 (202,500) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $119,400. The company's actual funding (contributions) of the plan in 2020 amounted to $251,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,194,000 on January 1, 2020. Assume no benefits paid in 2020. (a) Your answer is correct. Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension Expense Question 3 of 4 2/3 : (a) Your answer is correct. Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (Enter amounts that reduce pension expense with elther a negative sign preceding the number e.g. -45 or parenthesis eg. (45).) Components of Pension Expense Service Cost 78000 Interest on Projected Beneil Obligation 152500 Expected Return on Plan Assets (79400) Amortization of Prior Service Cost 119400 270500 e Textbook and Media List of Accounts Question 3 of 4 2/3 E (b) Your answer is correct. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. (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 Ofor the amounts.) Account Titles and Explanation Debit Credit Pension Expense 270500 Pension Asset/Liability 302400 Cash 251000 Other Comprehensive Income (G/L) 202500 Other Comprehensive Income (PSC) 119400 (To record pension expense and employer's contribution) e Textbook and Media (c) Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Swifty Company for the year 2020. Swifty Company Income Statement (Partial) $ Swifty Company Comprehensive Income Statement $XXXX Question 3 of 4 2/3 = Swifty Company Comprehensive Income Statement $XXXX $ $XXXX Swifty Company Balance Sheet (Partial) Question 3 of 4
