a) using the above information of Nashville Corporation, complete the pension worksheet for 2020. Indicate credit entries by parentheses. Calculated amounts should be supported.

b) prepare journal entries to reflect the accounting for the company's pension plan for the year ending Dec 31, 2020

 

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IV. Preparing a pension work sheet, (15 points) The accountant for Nashville Corporation has developed the following information for the company's defined-benefit pension plan for 2020: Service cost Actual return on plan assets Annual contribution to the plan Amortization of prior service cost Benefits paid to retirees Settlement rate Expected rate of return on plan assets $500,000 250,000 920,000 125,000 60,000 10% 8% The accumulated benefit obligation at December 31, 2020, amounted to $3,250,000. IV. Preparing a pension work sheet, (15 points) The accountant for Nashville Corporation has developed the following information for the company's defined-benefit pension plan for 2020: Service cost Actual return on plan assets Annual contribution to the plan Amortization of prior service cost Benefits paid to retirees Settlement rate Expected rate of return on plan assets $500,000 250,000 920,000 125,000 60,000 10% 8% The accumulated benefit obligation at December 31, 2020, amounted to $3,250,000.

Answer rating: 100% (QA)

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