Question
Windsor Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) $24,000 Cr. Accumulated benefit obligation
Windsor Company provides the following selected information related to its defined benefit pension plan for 2020.
Pension asset/liability (January 1)
$24,000
Cr.
Accumulated benefit obligation (December 31)
398,100
Actual and expected return on plan assets
9,700
Contributions (funding) in 2020
148,900
Fair value of plan assets (December 31)
792,000
Settlement rate
10
%
Projected benefit obligation (January 1)
695,000
Service cost
79,200
Compute pension expense.
Pension expense for 2020:
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,600.
Indicate the pension-related amounts that would be reported in the company's income statement and balance sheet for 2020.
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