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Rollo Company maintains a defined benefit pension plan with First Cranston Trust. Below are the balances reported by First Cranston on January 1, 2020. Planned
| Rollo Company maintains a defined benefit pension plan with First Cranston Trust. Below | ||||||||
| are the balances reported by First Cranston on January 1, 2020. | ||||||||
| Planned Benefit Obligation | $520,000 | |||||||
| Plan Assets | $650,000 | |||||||
| At the beginning of 2020, First Cranston Trust informed Rollo that due to amending the program for | ||||||||
| prior service for new employees, they need to deposit $180,000. Other matters for 2020 were: | ||||||||
| The settlement rate is 10%. | ||||||||
| Current service cost is $40,000. | ||||||||
| Expected earnings are 10% on beginning of the year Plan Assets. | ||||||||
| Actual earnings are $62,000. | ||||||||
| Prior service cost amortization is $25,000. | ||||||||
| First Cranston Trust paid retirement benefits of $35,000. | ||||||||
| Rollo funded the plan $120,000. | ||||||||
| Prepare a pensions worksheet below: | ||||||||
| Prepare the pension journal entry below: | ||||||||
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-1118096895
