Sheffield Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the followi
Posted: Sun Apr 17, 2022 6:54 pm
Sheffield Company adopts acceptable accounting for its
defined benefit pension plan on January 1, 2019, with the following
beginning balances: plan assets $199,200; projected benefit
obligation $252,000. Other data relating to 3 years’ operation of
the plan are as follows.
2019
2020
2021
Annual service cost
$16,100
$19,400
$25,400
Settlement rate and expected rate of return
10
%
10
%
10
%
Actual return on plan assets
18,300
21,990
23,900
Annual funding (contributions)
16,100
40,000
47,800
Benefits paid
13,700
16,600
21,200
Prior service cost (plan amended, 1/1/20)
157,500
Amortization of prior service cost
54,800
42,000
Change in actuarial assumptions establishes
a December 31, 2021, projected benefit obligation
of:
509,800
(a)
Prepare a pension worksheet presenting all 3 years’ pension
balances and activities.
B)
Prepare the journal entries (from the worksheet) to reflect all
pension plan transactions and events at December 31 of each
year.
defined benefit pension plan on January 1, 2019, with the following
beginning balances: plan assets $199,200; projected benefit
obligation $252,000. Other data relating to 3 years’ operation of
the plan are as follows.
2019
2020
2021
Annual service cost
$16,100
$19,400
$25,400
Settlement rate and expected rate of return
10
%
10
%
10
%
Actual return on plan assets
18,300
21,990
23,900
Annual funding (contributions)
16,100
40,000
47,800
Benefits paid
13,700
16,600
21,200
Prior service cost (plan amended, 1/1/20)
157,500
Amortization of prior service cost
54,800
42,000
Change in actuarial assumptions establishes
a December 31, 2021, projected benefit obligation
of:
509,800
(a)
Prepare a pension worksheet presenting all 3 years’ pension
balances and activities.
B)
Prepare the journal entries (from the worksheet) to reflect all
pension plan transactions and events at December 31 of each
year.