undefined
View Policies Show Attempt History Current Attempt in Progress Ayayai Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. 2. 3. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55.900. The company's funding policy requires a contribution to the pension trustee amounting to $145,545 for 2020. As of January 1, 2020, the company had a projected benefit obligation of $900,500, an accumulated benefit obligation of $796,600, and a debit balance of $403,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $600,900 at the beginning of the year. The actual and expected return on plan assets was $53,500. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid. Amortization of prior service cost was $49,600 in 2020. Amortization of net gain or loss was not required in 2020. 4. (a) Your answer is correct. Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension Expense Service Cost $ 55900 Interest on Projected Benefit Obligation V 81045 Expected Return on Plan Assets -53500 Amortization of Prior Service Cost 49600 Pension Expense V $ 133045 e Textbook and Media List of Accounts Attempts: 2 of 3 used Using multiple attempts will impact your score. 10% score reduction after attempt 2 (b) Your answer is correct. Prepare the journal entry or entries to record pension expense and the employer's contribution to the pension trustee in 2020. (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.) Account Titles and Explanation Debit Credit Pension Expense 133045 Pension Asset/Liability 62100 Cash 145545 Other Comprehensive Income (PSC) 49600 List of Accounts Attempts: 1 of 3 used Using multiple attempts will impact your score. 10% score reduction after attempt 2 (c) Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Ayayai Company for the year 2020. Ayayai Company Income Statement (Partial) For the Year Ended December 31, 2020 $ Ayayai Company Comprehensive Income Statement For the Year Ended December 31, 2020 $XXXX $XXXX Ayayai Company Balance Sheet (Partial) $ $
