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The pension worksheet for 2020 is presented below. Items Balance, Jan. 1, 2020 Service cost Interest cost Actual return Unexpected loss Amortization of PSC Contributions Benefits Increase in PBO Journal entry for 2020 Accumulated OCI, Dec. 31, 2019 Balance, Dec. 31, 2020 Annual Pension Expense $21,800 Dr. 28,340 Dr. 19,620 Cr. 2,725 Cr. 38,150 Dr. Cash $44,690 Cr. $65,945 Dr. $44,690 Cr. PHAROAH COMPANY Worksheet-2020 General Journal Entries OCI-Prior Service Cost $38,150 Cr. 38,150 Cr. 87,200 Dr. $49,050 Dr. OCI- Gain/Loss $2,725 Dr. 47,415 Dr. 50,140 Dr. 0 Pension Asset/Liability $130,800 Cr. 33,245 Cr. $50,140 Dr. $164,045 Cr. For 2021, Pharoah will use the same assumptions as 2020 for the expected rate of returns on plan assets. The settlement rate for 2021 is 10%.
The pension worksheet for 2020 is presented below. ual ion nse Dr. 1 Dr. 1 Cr. 1 Dr. Dr. Cash Worksheet-2020 General Journal Entries $44,690 Cr. PHAROAH COMPANY $44,690 Cr. OCI-Prior Service Cost $38,150 Cr. OCI- Gain/Loss $2,725 Dr. 47,415 Dr. 38,150 Cr.. 87,200 Dr. $49,050 Dr. $50,140 Dr. 50,140 Dr. 0 Pension Asset/Liability $130,800 Cr. 33,245 Cr. $164,045 Cr. Memo Record Projected Benefit Obligation Plan Assets $354,250 Cr. $223,450 Dr. 21,800 Cr. 28,340 Cr. 16,350 Dr. 47,415 Cr. 19,620 Dr. 44.690 Dr. 16,350 Cr. $435,455 Cr. $271,410 Dr. For 2021, Pharoah will use the same assumptions as 2020 for the expected rate of returns on plan assets. The settlement rate for 2021 is 10%.
(a) Your Answer Correct Answer (Used) Prepare a pension worksheet for 2021. (Round answers to O decimal places, e.g. 2,500. Enter all amounts as positive.) Items Balance, Jan. 1, 2021 Annual Pension Expense Cash
Balance, Jan. 1, 2021 Service cost Items Interest cost Actual return Unexpected gain Amortization of PSC Amortization of loss Contributions Benefits Journal entry for 2021 Accumulated OCI, Dec. 31, 2020 Balance, Dec. 31, 2021 Annual Pension Expense Amortization of the loss 64,310 264 43,546 34,880 7.739 30,520 264 111,499 Dr. V Dr. Cr. > Dr. > > Dr. V Dr. V Dr. ✓ Cash i 55,590 Calculate the amortization of the loss, if any, in 2021 using the corridor approach. (Round answers to 0 decimal places, e.g. 2,500) 55,590 Cr. Cr.
Cash 55,590 55,590 Amortization of the loss General Journal Entries OCI-Prior Service Cost 264 30,520 i 30,520 49,050 18.530 Cr. Cr. Dr. Y Dr. V OCI-Gain/ Loss 7.739 Calculate the amortization of the loss, if any, in 2021 using the confidor approach. (Round answers to 0 decimal places, e.g. 2,500) 264 8.003 50,140 42.137
General Journal Entries OCI-Prior Service Cost 30,520 30,520 49,050 18,530 5 Amortization of the loss Dr. > Dr. > > Cr. V > OCI-Gain/ Loss 264 i 7,739 264 8,003 50, 40 42.137 S Cr. Cr. > Dr. > > > Dr. V Pension Asset/ Liability 164,045 17,386 Calculate the amortization of the loss, if any, in 2021 using the corridor approach. (Round answers to O decimal places, e.g. 2,500.) 181,431
3 10 37 S Cr. < Cr, > Dr. > Dr. > S Pension Asset/ Liability Amortization of the loss 164,045 17,386 181,431 Cr. 264 Cr. > < > Projected Benefit Obligation 435,455 64,310 43.546 29,430 i 513,881 Cr. Cr. Cr. Cr. Dri Memo Res > > > > > > > < > > alculate the amortization of the loss, if any, in 2021 using the corridor approach. (Round answers to O decimal places, e.g. 2,500.)
36 31 Cr. Cr. Cr. Projected Benefit Obligation ation of the loss 435,455 264 64,310 43,546 29.430 513,881 Cr. Cr. Memo Record Cr. Dr. Cr. > > < > < < < > < Plan Assets 271,410 34,880 55,590 29,430 332,450 Dr. Dr. Cr. the amortization of the loss, if any, in 2021 using the corridor approach. (Round answers to 0 decimal places, e.g. 2,500.) Dr. > > < > > < <
(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31. (Round answers to O decimal places, eg. 2,500. 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 Titles and Explanation Date Dec. 31, 2021 eTextbook and Medial List of Accounts Debit Credit