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Windsor Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020
Windsor Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021.
2020 | 2021 | |||||
Projected benefit obligation, January 1 | $594,100 | |||||
Plan assets (fair value and market-related value), January 1 | 407,700 | |||||
Pension asset/liability, January 1 | 186,400 | Cr. | ||||
Prior service cost, January 1 | 159,600 | |||||
Service cost | 40,200 | $59,200 | ||||
Settlement rate | 10 | % | 10 | % | ||
Expected rate of return | 10 | % | 10 | % | ||
Actual return on plan assets | 36,200 | 61,600 | ||||
Amortization of prior service cost | 69,500 | 49,700 | ||||
Annual contributions | 96,400 | 81,400 | ||||
Benefits paid retirees | 31,600 | 54,010 | ||||
Increase in projected benefit obligation due to changes in actuarial assumptions | 87,000 | 0 | ||||
Accumulated benefit obligation at December 31 | 720,800 | 789,000 | ||||
Average service life of all employees | 20 years | |||||
Vested benefit obligation at December 31 | 465,700 |
(a)
Prepare a pension worksheet presenting both years 2020 and 2021. (Round answers to 0 decimal places, e.g. 5,125. Enter all amounts as positive.)
Question 2 of 9 - / 11 View Policies Current Attempt in Progress Windsor Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021. 2020 2021 Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 $594,100 407,700 186,400 Cr. 159,600 40,200 10 % 10 % 36,200 69,500 96,400 31,600 87,000 720,800 $59,200 10 % 10 % 61,600 49,700 81,400 54,010 0 789,000 20 years 465,700 Question 2 of 9 - / 11 Annual Pension Expense Items Cash Balance. Jan. 1. 2020 $ Service cost Interest cost Actual return Unexpected loss Amortization of PSC Contributions Benefits Increase in PBO Journal entry for 2020 $ Accumulated OCI, Dec 31, 2019 Balance, Dec 31, 2020 Service cost Interest cost Actual return Unexpected gain Amortization of PSC Amortization of loss Contributions Benefits Journal entry for 2021 $ $ Accumulated OCI, Dec 31, 2020 Balance, Dec 31, 2021 Question 2 of 9 - / 11 Pension Worksheet-2020 and 2021 General Journal Entries OCI-Prior OCI - Gain/ Service Cost Loss Pension Asset Liability S V $ $ V V $ $ $ Question 2 of 9 - / 11 Memo Record Pension Asset/ Liability Projected Benefit Obligation Plan Assets $ V V V $Step by Step Solution
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