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Posted: **Sun Jul 03, 2022 1:08 pm**

: Current Attempt In Progress Ayayai Company Sponsors A Defined Benefit Pension Plan For Its Employees The Following Data 1 (30.52 KiB) Viewed 10 times

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Current Attempt in Progress Ayayai Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021. Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 (a) 2020 $570,000 440,000 130,000 Cr. 390,000 70,000 8% 8 % 60,000 80,000 90,000 57,000 146,000 437,000 2021 $92,000 8% 8% 56,000 119,000 95,000 61,000 546,000 12 years 296,000 0
Your Answer Correct Answer (Used) Prepare a pension worksheet presenting both years 2020 and 2021. (Enter all amounts as positive.) Items Balance, Jan. 1, 2020 Service cost Interest cost Actual return Unexpected gain Amortization of PSC Contributions Benefits Increase in PBO Journal entry for 2020 Accumulated OCI, Dec. 31, 2019 Annual Pension Expense 70,000 45,600 60,000 24,800 80,000 i 160,400 Dr. V Dr. Cr. < Dr. Dr. > Dr. V > $ Cash 90,000 i 90,000 Cr. Cr.
Cash 90,000 90,000 Cr. Cr. > > > < < S General Journal Entries OCI-Prior Service Cost 80,000 80,000 390,000 AYAYAI COMPANY Pension Worksheet-2020 and 2021 310,000 Cr. Cr. V Dr. Dr. M OCI-Gai Loss 24, 146, 121. 121,
General Journal Entries OCI-Prior Service Cost 80,000 80,000 390,000 AYAYAI COMPANY Pension Worksheet-2020 and 2021 310,000 Cr. Dr. Dr. > > OCI-Gain/ Loss 24,800 146,000 121,200 121,200 Dr. Dr. Dr. V Pension Asset/ Liability 130,000 111.600 241,600
Pension Asset/ Liability 130,000 111,600 241,600 Cr. Cr > Projected Benefit Obligation 570,000 70,000 45.600 57,000 146,000 774,600 92,000 61.968 Cr. V Cr. Cr. Dr. Cr. Cri Cr. Memo Record Cr. > > Plan Assets 440,000 60,000 90,000 57,000 533,000
Pension Asset/ Liability 130,000 111.600 241,600 Cr. Cr. > > > > < < Projected Benefit Obligation 570,000 70,000 45.600 57,000 146,000 774,600 92.000 61.968 Cr. Cr. V Cr. V Cr. Memo Record Cr. Dr. V Cr. Cr. > > Plan Assets 440,000 60,000 90,000 57,000 i 533,000 Dr. Dr. Dr. Dr. Cr. > > >
Accumulated OCI, Dec. 31, 2019 Balance, Dec. 31, 2020 Service cost 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 Amortization of the loss $ 92,000 3,645 61.968 56.000 13,360 119,000 Calculate the amortization of the loss (2021) using the corridor approach. 3,645 233,973 Dr. V Dr. V Cr Dr. Dr. < Dr. V Dr. > 40 $ 95,000 95.000 Cr. Cr.
95.000 95,000 Cr. Cr. > < < Amortization of the loss $ 390,000 3,645. 310,000 119,000 119,000 310,000 Calculate the amortization of the loss (2021) using the corridor approach. 191.000 Dr. Dr. Cr. Cr. V Dr. V Dr. 121.200 13,360 3,645 17,005 121,200 104,195 Cr. Cr. Cr. Dr. Dr. Dr.
121.200 13,360 i 3,645 17,005 121.200 104,195 Dr. Cr. Cr Dr. Dr. < 241,600 Amortization of the loss $ i 2.968 244,568 3.645 Cr. Calculate the amortization of the loss (2021) using the corridor approach. Cr. 774,600 92.000 61.968 61,000 867,568 Cr. V Cr. Cr. Cr. Dr. > > >
241.600 i 2,968 244,568 Cr. Cr. Cr. > > < > > > Amortization of the loss 774,600 3,645 92,000 61.968 i 61,000 867,568 8 > Cr. Cr. Calculate the amortization of the loss (2021) using the corridor approach. Dr. V Cr. < > 533.000 56.000 95,000 61.000 623,000 Dr. Dr. Cr. Dr. > > >
(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (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.) Date Account Titles and Explanation Dec. 31. 2020 Dec. 31. 2021 Debit Credit