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The accountant for Pharoah Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $530,000 Actual return on plan
The accountant for Pharoah Corporation has developed the following information for the company's defined-benefit pension plan for 2021:
Service cost | $530,000 | |
Actual return on plan assets | 262,000 | |
Annual contribution to the plan | 932,000 | |
Amortization of prior service cost | 126,200 | |
Benefits paid to retirees | 66,000 | |
Settlement rate | 10% | |
Expected rate of return on plan assets | 8% |
The accumulated benefit obligation at December 31, 2021, amounted to $3,310,000.
Using the above information for Pharoah Corporation, complete the pension work sheet for 2021. (Do not leave any answer field blank. Enter 0 for amounts.) Pharoah Corporation Pension Work Sheet-2021 General Journal Entries OCI-Prior OCI, Gain/ Service Cost Loss Memo Entries Annual Pension Expense Pension Asset/ Liability Projected Benefit Obligation Plan Assets Cash Balance, Dec. 31, 2020 631,000 4,060,000 2,780,000 Service cost Dr. Cr. 530,000 530,000 Interest cost Actual return Unexpected gain/loss Amortization of PSC Contributions Benefits Gain/loss Amortization BB lournal entry for 2021 Gain/loss Amortization Journal entry for 2021 Accumulated OCI, 12/31/20 Balance, Dec. 31, 2021 Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 Pension Expense Pension Asset/Liability CashStep by Step Solution
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