ita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value)
ita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value)
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 4E
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Question 20
Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.
| January 1, 2020 | December 31, 2020 | |||
| Vested benefit obligation | $1,520 | $1,930 | ||
| Accumulated benefit obligation | 1,930 | 2,700 | ||
| Projected benefit obligation | 2,510 | 3,360 | ||
| Plan assets (fair value) | 1,730 | 2,670 | ||
| Settlement rate and expected |
10% | |||
| Pension asset/liability | 780 | ? | ||
| Service cost for the year 2020 | 400 | |||
| Contributions (funding in 2020) | 690 | |||
| Benefits paid in 2020 | 200 |
(a2)
Prepare the journal entries at December 31, 2020, to record pension expense and related pension transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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Date
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Account Titles and Explanation
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Debit
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Credit
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| Dec. 31, 2020 |
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