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Recording Pension Expense, Gains/Losses, Funding, Benefit Payments and Preparing Worksheet Amex Company started a noncontributory defined benefit pension plan on January 1, 2019. The records
Recording Pension Expense, Gains/Losses, Funding, Benefit Payments and Preparing Worksheet Amex Company started a noncontributory defined benefit pension plan on January 1, 2019. The records of Amex Company indicate the following for the year 2020. Account Balances Jan 1, 2020 Projected Benefit Obligation $48,000 Cr. Plan Assets 44,000 Dr. Accumulated OCI-Pension Gain/Loss 2,400 Cr. Activity 2020 Service cost $16,000 Interest cost interest rate, 10%) 4,800 Gain in PBO due to change in actuarial assumption 3,200 Pension benefits paid 800 Actual earnings on plan assets (same as expected return) 4,000 Plan funding payment contributions) 24,000 Financial Statement Amounts and Entries Pension Worksheet a. Compute net pension expense for 2020 assuming that the January 1, 2020, Accumulated OCIPension Gain/Loss is amortized in 2020 over a 15-year average remaining service period. Pension expense, 2020 $ 0 Cr. . b. Prepare the 2020 pension expense, deferral of gain, funding, and benefits paid entries for Amex Company. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Account Name Dr. Dec 31, 2020 Pension Expense 0 0 Plan Assets 0 0 OCIPrior Service Cost 0 0 0 0 To record pension expense Dec. 31, 2020 0 0 0 0 To record deferral of actuarial gain or loss on PBO Dec 31, 2020 0 0 Cash . To record plan funding Dec 31, 2020 0 0 0 0 To record benefits paid 0 0 c. Compute the underfunded (overfunded) pension balance as of December 31, 2020. Note: Use a negative sign for a net pension liability. Net pension asset (liability) $ 0 Please answer all parts of the
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