Our financial statements at December 31, 2019, contained a net defined benefit liability of $120,000 and disclosed a defined benefit obligation (DBO) of $390,000. 

- We contributed $36,000 to the plan on November 1, 2020. 

- Our current service cost for 2020 was determined to be $40,000. 

- Benefits of $20,000 were paid from the plan evenly throughout 2020. 

- The discount rate applied to the pension plan liabilities and plan assets is 5%. 

- There was a loss on remeasurement of the plan assets of $4,100 and and an actuarial gain of $ 5900 for 2020

(a). PREPARE THE JOURNAL ENTRY FOR CONTRIBUTION TO THE PLAN DURING 2020.

(b) prepare the pension expense for 2020 recognizing separately each component of the pension expense.

(c) prepare the journal entry remeasurment of plan asset and actuarial losses .

(d) prepare the journal entry of benefits for plan.

Answer rating: 100% (QA)

a Fair value of plan asset 36000 Cash 36000 b Current service cost 40000 Defin... View the full answer