Splish Toothpaste Company initiates a defined benefit pension plan for its 50 employees on January 1, 2020. The insuranc

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Splish Toothpaste Company Initiates A Defined Benefit Pension Plan For Its 50 Employees On January 1 2020 The Insuranc 1 (81.1 KiB) Viewed 52 times

Splish 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) For Year Ended December 31, 2020 2022 $50,000 $84,900 45,400 2021 0 60,000 200,300 50,000 163,500 78,900 60,000 $180,690 294,700 321,900 83,670 105,900 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, $60,000; 2021, $84,900; and 2022, $114,500. The average remaining service life per employee is 12 years. No benefits were paid in 2020, $30,100 of benefits were paid in 2021, and $18,600 of benefits were paid in 2022 (all benefits paid at end of year).

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 O decimal places, e.g. 2,525.) Pension expense for 2020 Pension expense for 2021 Pension expense for 2022 List of Accounts tA tA LA 60000 86500 126940 Assistance Used Attempts: 1 of 7 used

(b) Your answer is partially correct. 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 Pension Expense Cash Pension Asset/Liability Pension Expense Other Comprehensive Income (G/L) Cash Pension Asset/Liability Pension Expense Other Comprehensive Income (G/L) Cash Pension Asset/Liability Debit 60000 86500 78,900 [ 11 126940 0 Credit 50000 10000 60000 140300 105,900 216000