Question

Kingbird Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020.

		January 1, 2020		December 31, 2020
Projected benefit obligation		$1,498,000		$1,526,000
Market-related and fair value of plan assets		784,000		1,116,400
Accumulated benefit obligation		1,572,000		1,691,700
Accumulated OCI (G/L)—Net gain		0		(199,800	)

The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $119,700. The company’s actual funding (contributions) of the plan in 2020 amounted to $254,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,197,000 on January 1, 2020. Assume no benefits paid in 2020.

PART A: Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)

COMPONENTS OF PENSION EXPENSE

SERVICE COST $78,000

INTEREST ON PROJECTED BENEFIT OBLIGATION. 149,800

EXPECTED RETURN ON PLAN ASSETS (78,400)

AMORTIZATION OF PRIOR SERVICE COST 119,700

= $269,100

PART B: Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

ACCOUNT TITLE AND EXPLANATION	DEBIT	CREDIT
PENSION EXPENSE	$269,100
PENSION ASSET/LIABILITY
CASH
OTHER COMPREHENSIVE INCOME ( PSC )
OTHER COMPREHENSIVE INCOME(

THIS IS MY WORK SO FAR WHICH I AM AWARE IS CORRECT. I NEED TO COMPLETE PART B.CAN SOMEONE PLEASE HELP. THANK YOU

Answer 1