Floki Company has a defined benefit pension plan with Last Warwick Trust Company. On December 31,...

 

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Floki Company has a defined benefit pension plan with Last Warwick Trust Company. On December 31, 2020 Plan Assets were $500,000 while the Plan Benefit Obligation was $480,000. During 2020 Last Warwick paid benefits to retirees of $40,000. In addition, expected earnings were $60,000 while actual earnings were $50,000. The service cost for the year was $70,000, and interest cost or settlement was $35,000. Floki constributed $120,000 during the year to the pension fund. There were no amortizations of prior service cost nor other comprehensive income gains or losses. There were no amendments to the plan. Prepare a schedule to determine the beginning balance of the Pension Asset/Liability at January 1, 2020. Floki Company has a defined benefit pension plan with Last Warwick Trust Company. On December 31, 2020 Plan Assets were $500,000 while the Plan Benefit Obligation was $480,000. During 2020 Last Warwick paid benefits to retirees of $40,000. In addition, expected earnings were $60,000 while actual earnings were $50,000. The service cost for the year was $70,000, and interest cost or settlement was $35,000. Floki constributed $120,000 during the year to the pension fund. There were no amortizations of prior service cost nor other comprehensive income gains or losses. There were no amendments to the plan. Prepare a schedule to determine the beginning balance of the Pension Asset/Liability at January 1, 2020.

Answer rating: 100% (QA)

Ending plan asset 500000 Add Pension benefits paid 40000 Less Contribution to pension fund 120000 ... View the full answer