* Question 5

On January 1, 2020, Cheyenne Company has the following defined benefit pension plan balances.

Projected benefit obligation		$4,506,000
Fair value of plan assets		4,220,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $508,000 are created. Other data related to the pension plan are as follows.

		2020			2021
Service cost		$152,000			$179,000
Prior service cost amortization		0			91,000
Contributions (funding) to the plan		237,000			281,000
Benefits paid		202,000			284,000
Actual return on plan assets		253,200			262,000
Expected rate of return on assets		6	%		8	%

Prepare a pension worksheet for the pension plan for 2020 and 2021. (Enter all amounts as positive.)

For 2021, prepare the journal entry to record pension-related amounts. (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.)