The following defined pension data of Waterway Corp. apply to the year 2020.Projected benefit obligation, 1/1/20 (before amendment) $509,000 Plan assets, 1/1/20 496,000 Pension liability 13,000 On January 1, 2020, Waterway Corp., through plan amendment, grants prior service benefits having a present value of 123,000 Settlement rate 9%Service cost 58,300 Contributions (funding) 59,600 Actual (expected) return on plan assets 48,300 Benefits paid to retirees 43,500 Prior service cost amortization for 2020 16,400 For 2020, prepare a pension worksheet for Waterway Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. (Enter all amounts as positive.)WATERWAY CORP.Pension Worksheet—2020 General Journal Entries Memo RecordItems Annual PensionExpense Cash OCI–Prior

Answered: present value of 123,000 Settlement…

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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The following defined pension data of Waterway Corp. apply to the year 2020.

Projected benefit obligation, 1/1/20 (before amendment)	$509,000
Plan assets, 1/1/20	496,000
Pension liability	13,000
On January 1, 2020, Waterway Corp., through plan amendment, grants prior service benefits having a present value of	123,000
Settlement rate	9	%
Service cost	58,300
Contributions (funding)	59,600
Actual (expected) return on plan assets	48,300
Benefits paid to retirees	43,500
Prior service cost amortization for 2020	16,400

For 2020, prepare a pension worksheet for Waterway Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. (Enter all amounts as positive.)

WATERWAY CORP. Pension Worksheet—2020
		General Journal Entries		Memo Record
Items	Annual Pension Expense		Cash		OCI–Prior

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