Bonita Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $469,800 Projected benefit obligation 607,000 Pension asset/liability 137,200 Accumulated OCI (PSC) 97,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $91,100 Settlement rate, 8% Actual return on plan assets 54,400 Amortization of prior service cost 19,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,700 Contributions 99,500 Benefits paid retirees 85,800 Using the data above, compute pension expense for Bonita Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BONITA CORP. Pension Worksheet General Journal Entries Memo Record Items Annual Pension Expense Cash OCI—Prior Service Cost OCI— Gain/ Loss Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, Jan. 1, 2020 $ $ $ $ $ $ $ Service cost Interest cost Actual return Unexpected gain Amortization of PSC Liability increase Contributions Benefits Journal entry for 2020 $ $ Accumulated OCI, Dec. 31, 2019 Balance, December 31, 2020 $ $ $ $ $ eTextbook and Media List of Accounts Prepare the journal entry for pension expense for 2020. (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.)
Bonita Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $469,800 Projected benefit obligation 607,000 Pension asset/liability 137,200 Accumulated OCI (PSC) 97,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $91,100 Settlement rate, 8% Actual return on plan assets 54,400 Amortization of prior service cost 19,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,700 Contributions 99,500 Benefits paid retirees 85,800 Using the data above, compute pension expense for Bonita Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BONITA CORP. Pension Worksheet General Journal Entries Memo Record Items Annual Pension Expense Cash OCI—Prior Service Cost OCI— Gain/ Loss Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, Jan. 1, 2020 $ $ $ $ $ $ $ Service cost Interest cost Actual return Unexpected gain Amortization of PSC Liability increase Contributions Benefits Journal entry for 2020 $ $ Accumulated OCI, Dec. 31, 2019 Balance, December 31, 2020 $ $ $ $ $ eTextbook and Media List of Accounts Prepare the journal entry for pension expense for 2020. (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.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 1E
Related questions
Question
Bonita Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
| Plan assets | $469,800 | ||
| Projected benefit obligation | 607,000 | ||
| Pension asset/liability | 137,200 | ||
| Accumulated OCI (PSC) | 97,100 | Dr. |
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
| Service cost | $91,100 | |
| Settlement rate, 8% | ||
| Actual return on plan assets | 54,400 | |
| Amortization of prior service cost | 19,100 | |
| Expected return on plan assets | 51,600 | |
| Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions |
79,700 | |
| Contributions | 99,500 | |
| Benefits paid retirees | 85,800 |
Using the data above, compute pension expense for Bonita Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.)
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BONITA CORP.
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eTextbook and Media
List of Accounts
Prepare the journal entry for pension expense for 2020. (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.)
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Account Titles and Explanation
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Debit
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