The following defined pension data of Indigo Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $ 612,000 Plan assets, 1/1/20 598,000 Pension liability 14,000 On January 1, 2020, Indigo Corp., through plan amendment, grants prior service benefits having a present value of 122,000 Settlement rate 9 % Service cost 62,900 Contributions (funding) 63,900 Actual (expected) return on plan assets 56,700 Benefits paid to retirees 38,600 Prior service cost amortization for 2020 16,000 For 2020, prepare a pension worksheet for Indigo Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. (Enter all amounts as positive.)
The following defined pension data of Indigo Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $ 612,000 Plan assets, 1/1/20 598,000 Pension liability 14,000 On January 1, 2020, Indigo Corp., through plan amendment, grants prior service benefits having a present value of 122,000 Settlement rate 9 % Service cost 62,900 Contributions (funding) 63,900 Actual (expected) return on plan assets 56,700 Benefits paid to retirees 38,600 Prior service cost amortization for 2020 16,000 For 2020, prepare a pension worksheet for Indigo Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. (Enter all amounts as positive.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following defined pension data of Indigo Corp. apply to the year 2020.
| Projected benefit obligation, 1/1/20 (before amendment) | $ 612,000 | ||
| Plan assets, 1/1/20 | 598,000 | ||
| Pension liability | 14,000 | ||
| On January 1, 2020, Indigo Corp., through plan amendment, grants prior service benefits having a present value of |
122,000 | ||
| Settlement rate | 9 | % | |
| Service cost | 62,900 | ||
| Contributions (funding) | 63,900 | ||
| Actual (expected) return on plan assets | 56,700 | ||
| Benefits paid to retirees | 38,600 | ||
| Prior service cost amortization for 2020 | 16,000 |
For 2020, prepare a pension worksheet for Indigo Corp. that shows the
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