Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $817,830 $993,330 Projected benefit obligation, January 1 819,000 936,000 Pension asset/liability, January 1 163,800 Cr. ? Prior service cost, January 1 292,500 280,800 Service cost 70,200 105,300 Actual and expected return on plan assets 28,080 35,100 Amortization of prior service cost 11,700 14,040 Contributions (funding) 134,550 140,400 Accumulated benefit obligation, December 31 585,000 643,500 Interest/settlement rate 10 % 10 % Pension expense for 2020: $135,720 Pension expense for 2021: $177,840 Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years. Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Dec. 31, 2021
Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $817,830 $993,330 Projected benefit obligation, January 1 819,000 936,000 Pension asset/liability, January 1 163,800 Cr. ? Prior service cost, January 1 292,500 280,800 Service cost 70,200 105,300 Actual and expected return on plan assets 28,080 35,100 Amortization of prior service cost 11,700 14,040 Contributions (funding) 134,550 140,400 Accumulated benefit obligation, December 31 585,000 643,500 Interest/settlement rate 10 % 10 % Pension expense for 2020: $135,720 Pension expense for 2021: $177,840 Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years. Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Dec. 31, 2021
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
Related questions
Question
Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.
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2020
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2021
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| Plan assets (fair value), December 31 | $817,830 | $993,330 | ||||
| Projected benefit obligation, January 1 | 819,000 | 936,000 | ||||
| Pension asset/liability, January 1 | 163,800 | Cr. | ? | |||
| Prior service cost, January 1 | 292,500 | 280,800 | ||||
| Service cost | 70,200 | 105,300 | ||||
| Actual and expected return on plan assets | 28,080 | 35,100 | ||||
| Amortization of prior service cost | 11,700 | 14,040 | ||||
| Contributions (funding) | 134,550 | 140,400 | ||||
| Accumulated benefit obligation, December 31 | 585,000 | 643,500 | ||||
| Interest/settlement rate | 10 | % | 10 | % |
Pension expense for 2020: $135,720
Pension expense for 2021: $177,840
Prepare the
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Dec. 31, 2021
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