Jackson Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2021, 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 2023.

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2021 2022 2023 Annual service cost $16,000 $19,0o0 $26,000 Discount (interest) rate 10% 10% 10% Actual return on plan assets 20,000 22,000 24,000 Annual funding (contributions) 16,000 40,000 48,000 Benefits paid 14,000 16,400 21,000 Past service cost (plan amended, 1/1/22) 160,000 Change in actuarial assumptions establishes a December 31, 2023, defined benefit obligation of: 520,000