Carla Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $ 197,800; projected benefit obligation $ 252,000. Other data relating to 3 years’ operation of the plan are as follows. 2019 2020 2021 Annual service cost $ 15,800 $ 19,300 $ 26,000 Settlement rate and expected rate of return 10 % 10 % 10 % Actual return on plan assets 17,700 21,740 24,100 Annual funding (contributions) 15,800 39,700 47,300 Benefits paid 13,900 16,100 21,200 Prior service cost (plan amended, 1/1/20) 161,100 Amortization of prior service cost 54,200 41,000 Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 522,400 Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year Indicate the pension-related amounts reported in the financial statements for 2021.
Carla Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $ 197,800; projected benefit obligation $ 252,000. Other data relating to 3 years’ operation of the plan are as follows. 2019 2020 2021 Annual service cost $ 15,800 $ 19,300 $ 26,000 Settlement rate and expected rate of return 10 % 10 % 10 % Actual return on plan assets 17,700 21,740 24,100 Annual funding (contributions) 15,800 39,700 47,300 Benefits paid 13,900 16,100 21,200 Prior service cost (plan amended, 1/1/20) 161,100 Amortization of prior service cost 54,200 41,000 Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 522,400 Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year Indicate the pension-related amounts reported in the financial statements for 2021.
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 1E
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Question
Carla Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $ 197,800; projected benefit obligation $ 252,000. Other data relating to 3 years’ operation of the plan are as follows.
2019
|
2020
|
2021
|
|||||||
Annual service cost | $ 15,800 | $ 19,300 | $ 26,000 | ||||||
Settlement rate and expected |
10 | % | 10 | % | 10 | % | |||
Actual return on plan assets | 17,700 | 21,740 | 24,100 | ||||||
Annual funding (contributions) | 15,800 | 39,700 | 47,300 | ||||||
Benefits paid | 13,900 | 16,100 | 21,200 | ||||||
Prior service cost (plan amended, 1/1/20) | 161,100 | ||||||||
Amortization of prior service cost | 54,200 | 41,000 | |||||||
Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: |
522,400 |
Prepare the
Indicate the pension-related amounts reported in the financial statements for 2021.
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