The following data relate to the operation of Tamarisk Co.s pension plan in 2021.

Service cost		$66,080
Actual return on plan assets		35,840
Amortization of prior service cost		31,360
Annual contributions		57,120
Benefits paid retirees		30,240
Average service life of all employees		25 years

The pension worksheet for 2020 is presented below.

TAMARISK COMPANY Worksheet2020

General Journal Entries

Memo Record

Items

Annual Pension Expense

Cash

OCIPrior Service Cost

OCI Gain/Loss

Pension Asset/Liability

Projected Benefit Obligation

Plan Assets

Balance, Jan. 1, 2020

$134,400

Cr.

$364,000

Cr.

$229,600

Dr.

Service cost

$22,400

Dr.

22,400

Cr.

Interest cost

29,120

Dr.

29,120

Cr.

Actual return

20,160

Cr.

20,160

Dr.

Unexpected loss

2,800

Cr.

$2,800

Dr.

Amortization of PSC

39,200

Dr.

$39,200

Cr.

Contributions

$45,920

Cr.

45,920

Dr.

Benefits

16,800

Dr.

16,800

Cr.

Increase in PBO

48,720

Dr.

48,720

Cr.

Journal entry for 2020

$67,760

Dr.

$45,920

Cr.

39,200

Cr.

51,520

Dr.

34,160

Cr.

Accumulated OCI, Dec. 31, 2019

89,600

Dr.

0

Balance, Dec. 31, 2020

$50,400

Dr.

$51,520

Dr.

$168,560

Cr.

$447,440

Cr.

$278,880

Dr.

For 2021, Tamarisk will use the same assumptions as 2020 for the expected rate of returns on plan assets. The settlement rate for 2021 is 10%.

Pension Worksheet-2021 General Journal Entries OCI-Prior Service Cost OCI-Gain/ Loss Pension Asset/ Liability $ $ > > Interest cost 29120 Dr. Actual return 20160 Cr. > Amortization of loss $ $ > > Interest cost 29120 Dr. Actual return 20160 Cr. > Amortization of loss $ $