Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. (Creditaccount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for theaccount titles and enter O for the amounts.)DateDec. 31.2020Dec. 31,2021Account Titles and ExplanationPension ExpensePension Asset/LiabilityOther Comprehensive Income (PSC)Other Comprehensive Income (G/L)CashPension ExpensePension Asset/LiabilityOther Comprehensive Income (PSC)CashDebit10404032640138720Credit1020091801173001224012240114240 Splish Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020and 2021.Plan assets (fair value), December 31Projected benefit obligation, January 1Pension asset/liability, January 1Prior service cost, January 1Service costActual and expected return on plan assetsAmortization of prior service costContributions (funding)Accumulated benefit obligation, December 31Interest/settlement rate2020$712,980714,000142,800 Cr.255,00061,20024,48010,200117,300510,0008%2021$865,980816,000?244,80091,80030,60012,240122,400561,0008 %

Journal entries refers to the entries which are recorded by the business in their original books of…

Splish Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost 2020 $712,980 714,000 142,800 Cr. 255,000 61,200 24,480 10.200 2021 $865,980 816,000 ? 244,800 91,800 30,600 12.240

Splish Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost 2020 $712,980 714,000 142,800 Cr. 255,000 61,200 24,480 10.200 2021 $865,980 816,000 ? 244,800 91,800 30,600 12.240

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 5E

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