Jackson Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2018, with the following beginning balances: plan assets $200,000 and defined benefit obligation $250,000. Other data relating to 3 years' operation of the plan are shown below.

Instructions
a. Prepare a pension worksheet presenting all 3 years' pension balances and activities.
b. Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
c. Indicate the pension-related amounts reported in the financial statements for 2020.

Transcribed Image Text:

2020 2018 2019 Annual service cost Discount (interest) rate $16,000 $19,000 $26,000 10% 10% 10% Actual return on plan assets Annual funding (contributions) Benefits paid Past service cost (plan amended, 1/1/19) Change in actuarial assumptions establishes a December 31, 2020, defined benefit obligation of: 20,000 22,000 24,000 16,000 40,000 48,000 14,000 16,400 21,000 160,000 520,000