Reference no: EM132823615

U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020

Plan assets $410,000

Projected benefit obligation 300,000

U.S.M.'s actuary determined that 2021 service cost is $61,000. Both the expected and actual rate of return on plan assets are 10%. The interest (discount) rate is 6%. U.S.M. contributed $121,000 to the pension fund at the end of 2021, and retirees were paid $45,000 from plan assets. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).)

Problem 1: List is the pension expense at the end of 2021?

Problem 2: List is the projected benefit obligation at the end of 2021?

Problem 3: List is the plan assets balance at the end of 2021?

Problem 4: List is the net pension asset or net pension liability at the end of 2021?

Problem 5: show a journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.