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Prepare the journal entry to record the pension activity

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Reference no: EM132923861

Question - Company L displayed the following information in the December 31, 2019 financial statements and disclosures:

Projected benefit obligation $340,000

Fair value of plan assets 370,000

OCI: Unamortized prior service cost 90,000

OCI: Unrecognized net gain 49,000

Additional information for 2020:

1. Service cost for 2020 is $50,000.

2. The company's actuary indicated that the discount rate on the PBO is 8% and the expected rate of return on plan assets is 7% for 2020.

3. The company contributed $80,000 to the plan at the end of 2020, and benefits of $40,000 were paid from the plan to the retirees during 2020.

4. Any amortizations for prior service costs, and for gains and losses subject to amortization, should be amortized over 10 remaining service years.

5. The actuary revised her projections at the end of 2020 to the following amounts:

Projected benefit obligation = $363,800

Fair value of plan assets = $451,000

Part A - Complete the 2020 Pension Calculations on the Worksheet Below?

Part B - Prepare the journal entry to record the pension activity.

Part C - Complete the T-Accounts to show the company balances at 12/31/20?

Reference no: EM132923861

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