Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sheridan Toothpaste Company initiates a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company which administers the pension plan

image text in transcribed
image text in transcribed
Sheridan Toothpaste Company initiates a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company which administers the pension plan provided the following selected information for the years 2020, 2021, and 2022. For Year Ended December 31, 2020 2021 2022 Plan assets (fair value) $50,000 $85,100 $179,310 Accumulated benefit obligation 165,500 289.100 Projected benefit obligation 60,000 200,200 326,700 Net (gain) loss (for purposes of corridor calculation) 78.400 84,019 Employer's funding contribution (made at end of year) 50,000 60.000 104,000 45,000 0 There were no balances as of January 1, 2020, when the plan was initiated. The actual and expected return on plan assets was 10% over the 3-year period, but the settlement rate used to discount the company's pension obligation was 13% in 2020, 11% in 2021, and 8% in 2022. The service cost component of net periodic pension expense amounted to the following: 2020. $60.000; 2021. $85.100 and 2022,5118,300. The average remaining service life per employee is 12 years. No benefits were paid in 2020, $29,900 of benefits were paid in 2021, and $18,300 of benefits were paid in 2022 (all benefits paid at end of year). Prepare the journal entries to record net periodic pension expense, employer's funding contribution and related pension amounts for the years 2020 2021 and 2022. Round answers to decimal places, es 2,525. 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 for the amounts) Date Account Titles and Explanation Debit Credit Dec. 31. 2020 Pension Expense 60000 50000 Parion Asset/Lublity TODO Dec. 31. 2021 Pension Expert 36700 Other Comprehensive income GALI 715400 Cash 6000 Pension Assetability 105100 Dec 31 2022 Pension Expense 13057 Other Comprehensive Income IG/L) LA 101000 Pension Asset Lady 36671

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Theory And Practice

Authors: Roger H. Hermanson

1st Edition

0256023301, 978-0256023305

Students also viewed these Accounting questions

Question

Detailed note on the contributions of F.W.Taylor

Answered: 1 week ago

Question

5. Describe how contexts affect listening

Answered: 1 week ago