The following defined pension data of Indigo Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment)   $ 612,000   Plan assets, 1/1/20   598,000   Pension liability   14,000   On January 1, 2020, Indigo Corp., through plan amendment,    grants prior service benefits having a present value of   122,000   Settlement rate   9 % Service cost   62,900   Contributions (funding)   63,900   Actual (expected) return on plan assets   56,700   Benefits paid to retirees   38,600   Prior service cost amortization for 2020   16,000   For 2020, prepare a pension worksheet for Indigo Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. (Enter all amounts as positive.)

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

Projected benefit obligation, 1/1/20 (before amendment)   $ 612,000  
Plan assets, 1/1/20   598,000  
Pension liability   14,000  
On January 1, 2020, Indigo Corp., through plan amendment,
   grants prior service benefits having a present value of
  122,000  
Settlement rate   9 %
Service cost   62,900  
Contributions (funding)   63,900  
Actual (expected) return on plan assets   56,700  
Benefits paid to retirees   38,600  
Prior service cost amortization for 2020   16,000  


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

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