Question
The following defined pension data of Kingbird Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $504,000 Plan assets, 1/1/20 489,500 Pension
The following defined pension data of Kingbird Corp. apply to the year 2020.
Projected benefit obligation, 1/1/20 (before amendment) $504,000
Plan assets, 1/1/20 489,500
Pension liability 14,500
On January 1, 2020, Kingbird Corp., through plan amendment, grants prior service benefits having a present value of 109,000 S
ettlement rate 10 %
Service cost 63,600
Contributions (funding) 61,100
Actual (expected) return on plan assets 49,200
Benefits paid to retirees 39,900
Prior service cost amortization for 2020 18,400
For 2020, prepare a pension worksheet for Kingbird Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. (Enter all amounts as positive.)
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