Question

Marin Company sponsors a defined benefit pension plan. The following information related to the pension plan...

Marin Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.

2020

2021
Plan assets (fair value), December 31 $754,920 $916,920
Projected benefit obligation, January 1 756,000 864,000
Pension asset/liability, January 1 151,200 Cr. ?
Prior service cost, January 1 270,000 259,200
Service cost 64,800 97,200
Actual and expected return on plan assets 25,920 32,400
Amortization of prior service cost 10,800 12,960
Contributions (funding) 124,200 129,600
Accumulated benefit obligation, December 31 540,000 594,000
Interest/settlement rate 8 % 8 %

Compute pension expense for 2020 and 2021.

Pension expense for 2020

$
Pension expense for 2021

$

Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
pension expense, journal entries for 2 yearrs. biker company sponsors a defined benefit pension plan. the...
pension expense, journal entries for 2 yearrs. biker company sponsors a defined benefit pension plan. the following information related to the pension plan is available for 2017 and 2018. 2017 2018 plan assets (fair value) December 31 396,000 462,000 projected benefit obligation, January 1 400,000 500,000 pension asset/liability , January 1 60,000 cr ? prior service cost, Jan 1 300,000 260,000 service cost 30,000 42,000 actual and expected return on plan assets 26,000 32,000 amortization of prior service cost 40,000...
Bonita Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Bonita Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $56,300. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $136,404 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation...
Okner Inc. sponsors a defined benefit plan. The company provide the following information: - On December...
Okner Inc. sponsors a defined benefit plan. The company provide the following information: - On December 31, 2020, plan assets were $270,000 - The projected benefit obligation on December 31, 2020 was $270,000 - During 2021, service cost was $30,000, and the settlement rate was 10% (use beginning PBO) - Benefits paid in 2021 were $21,000 and contributions were $18,000 Required: a. Calculate Okner's pension expense for 2021. b. What are the balances of the projected benefit obligation and the...
Crane Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Crane Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $56,000. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $145,023 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation...
Exercise 20-10 (Part Level Submission) Skysong Corp. sponsors a defined benefit pension plan for its employees....
Exercise 20-10 (Part Level Submission) Skysong Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $498,300 Projected benefit obligation 614,700 Pension asset/liability 116,400 Accumulated OCI (PSC) 96,900 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $92,500 Settlement rate, 9% Actual return on plan assets 54,200 Amortization of prior service cost 18,100...
P20-4 (LO1,2,3,4) Pension Expense, Journal Entries for 2 Years                Gordon Company sponsors a defined benefit...
P20-4 (LO1,2,3,4) Pension Expense, Journal Entries for 2 Years                Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2017 and 2018. 2017 2018 Plan assets (fair value), December 31 $ 699,000 $     849,000 Projected benefit obligation, January 1 700,000 800,000 Pension asset/liability, January 1 140,000 Cr ? Prior service cost, January 1 250,000 240,000 Service cost 60,000 90,000 Actual and expected return on plan assets 24,000 30,000 Amortization of...
Mantle Industries. sponsors a defined-benefit pension plan for its employees. As of January 1, 2018, the...
Mantle Industries. sponsors a defined-benefit pension plan for its employees. As of January 1, 2018, the following balances related to this plan: (in thousands) Dr (Cr) Projected benefit obligation $         45,000 Fair value of plan assets             40,000 Accumulated other comprehensive income (AOCI) Prior service cost               2,000 Gain/Losses                    -   Service cost 5,000 Funding contribution 3,500 Benefits paid to plan participants 6,000 Amortization of prior service cost 200 Actual return on plan assets 2,400 Settlement/discount rate 10.0% Expected return...
The following information applies to Riddle Corp.’s defined benefit pension plan for the current year: Projected...
The following information applies to Riddle Corp.’s defined benefit pension plan for the current year: Projected benefit obligation January 1 (before amendment) $600,000 Plan assets January 1 540,000 Pension Asset/Liability, January 1 – credit balance 60,000 Present value of increase in service benefits effective January 1 because of an amendment in the pension plan (not included in the projected benefit obligation above) 150,000 Settlement rate 8% Contributions to the plan (funding) 50,000 Service Cost 70,000 Actual and expected return on...
Facebook, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the...
Facebook, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2020. Service cost $   230,000 Contributions to the plan                                          220,000 Actual return on plan assets                                      180,000 Projected benefit obligation (beginning of year)   2,400,000 Fair value of plan assets (beginning of year)        1,600,000 The expected return on plan assets and the settlement rate were both 10%. At the beginning of 2020, the pension plan is: a) Underfunded by $870,000 b) Overfunded...
Wonder Inc. sponsors a defined benefit plan for its employees. On January 01, 2020 the following...
Wonder Inc. sponsors a defined benefit plan for its employees. On January 01, 2020 the following balances related to the defined benefit plan: Fair value of the plan asset (MRAV)    $700,000    projected benefit obligation $730,000 Pension Liability (credit balance) $30,000 Other comprehensive income-prior service cost(Dr. balance)    $52,000 Other comprehensive income-gain/losses (Dr. balance) $158,000 As of December 31,2020 Wonder INC. amended the plan to give additional credit to existing employees for earlier years. The amended resulted in an...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT