The accounting staff of Usher Inc. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing the worksheet and completing the accounting tasks related to the pension plan for 2020.

Instructions

a. Determine the missing amounts in the 2020 pension worksheet, indicating whether the amounts are debits or credits.

b. Prepare the journal entry to record 2020 pension expense for Usher Inc.

c. The accounting staff has heard of a pension accounting procedure called ?corridor amortization.? Is Usher required to record any amounts for corridor amortization in (1) 2020? In (2) 2021? Explain.

Transcribed Image Text:

Pension Worksheet-Usher Inc. Page Layout Formulas Data Home Insert Review View P18 fx A D Н General Journal Entries Memo Record Projected Benefit Annual Pension 4 Pension OC-Prior OCI- Asset/ Service Cost Gain/Loss Liability Obligation Plan Assets Cash Items Expense 6 Balance, Jan. 1, 2020 1,700 1,100 Cr. 2,800 7 Service cost 8 Interest cost 9 Actual return 10 Unexpected gain (1) 500 (2) (3) 280 220 (4) 150 11 Amortization of PSC (5) 55 12 Contributions 13 Benefits 14 Liability increase 15 Journal entry 800 800 200 200 (6) 365 (10) (7) (8) (9) (11) 16 17 Accumulated OCI, Dec. 31, 2019 1,100 18 Balance, Dec. 31, 2020 1,045 215 1,225 3,745 2,520 19