Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value)   $565,000   Projected benefit obligation   656,000   Pension asset/liability   91,000  Cr. Prior service cost   86,000   Net gain or loss (debit)   92,000   As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost   $98,000   Settlement rate, 9%; expected return rate, 10%       Actual return on plan assets   50,000   Amortization of prior service cost   26,000   Contributions   126,000   Benefits paid retirees   92,000   Average remaining service life of active employees   10  years Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) Use the market-related asset value to compute the expected return and for corridor amortization. Expected return   $  Corridor amortization   $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan.

Plan assets (market-related value)   $565,000  
Projected benefit obligation   656,000  
Pension asset/liability   91,000  Cr.
Prior service cost   86,000  
Net gain or loss (debit)   92,000  


As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020.

Service cost   $98,000  
Settlement rate, 9%; expected return rate, 10%      
Actual return on plan assets   50,000  
Amortization of prior service cost   26,000  
Contributions   126,000  
Benefits paid retirees   92,000  
Average remaining service life of active employees   10  years


Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.)

Use the market-related asset value to compute the expected return and for corridor amortization.

Expected return  
Corridor amortization  
Annual Pension
Items
Expense
Cash
Balance, Jan. 1, 2020
$
Service cost
Interest cost
Actual return
Unexpected loss
Amortization of PSC
Amortization of loss
Contributions
Benefits
Journal entry for 2020
$
$
Accumulated OCI, Dec. 31, 2019
Balance, Dec. 31, 2020
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Transcribed Image Text:Annual Pension Items Expense Cash Balance, Jan. 1, 2020 $ Service cost Interest cost Actual return Unexpected loss Amortization of PSC Amortization of loss Contributions Benefits Journal entry for 2020 $ $ Accumulated OCI, Dec. 31, 2019 Balance, Dec. 31, 2020 > > > > > > > > > > > > > > > > > %24 %24
General Journal Entries
OCI-Prior
OCI- Gain/
Penison Asset/
Service Cost
Loss
Liability
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Transcribed Image Text:General Journal Entries OCI-Prior OCI- Gain/ Penison Asset/ Service Cost Loss Liability $ $ $ > > > > > > > > > > > > > > > > > > > > > > > > %24 %24 > > > > > > > > > > > >
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