The accountant for Potter Corporation has developed the following information for the company's defined-benefit pension plan for 2020:

Service cost $300,000

Actual return on plan assets 250,000

Annual contribution to the plan 800,000

Amortization of prior service cost 125,000

Benefits paid to retirees 200,000

Settlement rate 8%

Expected rate of return on plan assets 7%

The projected benefit obligation on December 31, 2019, amounted to $3,500,000 and plan assets are $3,300,000 on the same date. The accumulated OCI on December 31, 2019, was $600,000.

Instructions

1. Using the above information for the Corporation, complete the pension worksheet for 2020. Indicate (credit) entries by parentheses. Calculated amounts should be supported.

Potter Corporation Pension Work Sheet-2020 General Journal Entries Memo Entries Annual Pension Expense OCI Gain/ Loss Pension Asset / Liability Projected Benefit Obligation Cash Plan Assets PSC Bal., Dec. 31, 2019 Service Cost Interest Cost Actual return Unexpected gain/loss Amortization of PSC Accounting for Pensions and Postretirement Benefits Contributions Benefits Gain/loss amort Journal entry for 2020 Balance, Dec. 31, 2020