- Indigo Toothpaste Company Initiates A Defined Benefit Pension Plan For Its 50 Employees On January 1 2020 The Insuranc 1 (42.12 KiB) Viewed 9 times
- Indigo Toothpaste Company Initiates A Defined Benefit Pension Plan For Its 50 Employees On January 1 2020 The Insuranc 2 (17.23 KiB) Viewed 9 times
- Indigo Toothpaste Company Initiates A Defined Benefit Pension Plan For Its 50 Employees On January 1 2020 The Insuranc 3 (27.87 KiB) Viewed 9 times
Indigo Toothpaste
Company initiates a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance
company which administers the pension plan provided the following selected information for the years 2020, 2021, and 2022. Plan assets (fair value) Accumulated benefit obligation Projected benefit obligation Net (gain) loss (for purposes of corridor calculation) Employer's funding contribution (made at end of year) (a) For Year Ended December 31. 2020 2021 2022 $51,000 $87,400 $182,240 44,600 166,000 291,100 61,000 203,610 320,800 78,200 Your answer is correct. 0 51,000 61,000 83,481 There were no balances as of January 1, 2020, when the plan was initiated. The actual and expected return on plan assets was 10% over the 3-year period, but the settlement rate used to discount the
company's pension obligation was 13% in 2020, 11% in 2021, and 8% in 2022. The service cost component of net periodic pension expense amounted to the following: 2020, $61,000: 2021, $87,400; and 2022, $109,200. The average remaining service life per employee is 12 years. No benefits were paid in 2020, $29,700 of benefits were paid in 2021, and $18,400 of benefits were paid in 2022 (all benefits paid at end of year). 104,500 Calculate the amount of net periodic pension expense that the
company would recognize in 2020, 2021, and 2022. (Round answers
(a) Your answer is correct. Calculate the amount of net periodic pension expense that the
company would recognize in 2020, 2021, and 2022. (Round answers to 0 decimal places, e.g. 2,525.) Pension expense for 2020 $ Pension expense for 2021 $ Pension expense for 2022 $ eTextbook and Media List of Accounts 61000 89010 121569 Attempte: 1 of 4 used.
Prepare the journal entries to record net periodic pension expense, employer's funding contribution, and related pension amounts for the years 2020, 2021, and 2022. (Round answers to 0 decimal places, e.g. 2,525. 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 O for the amounts.) Date Account Titles and Explanation Dec. 31, 2020 Dec. 31, 2021 Dec. 31. 2022 Debit Credit