Prepare the following:

1. Pension worksheets for the Simpson Company for years ended December 31, 2020 and 2021.

2. Journal entries to record the pension expense for both years.

3. A reconciliation schedule for both years.

Assumptions for 2011:
	Plan assets, January 1, 2020	$ 450,000
	Projected benefit obligation, January 1, 2020	450,000
	Annual service cost for 2020	27,000
	Settlement rate for 2020	7%
	Actual return on plan assets for 2020	30,000
	Contributions for 2020	32,000
	Benefits paid to retirees during 2020	17,000
	Pension Asset/Liability, January 1, 2020	-
Assumptions for 2012:
	Present value of prior years service cost benefits
	granted January 1, 2021	$ 42,000
	Annual service cost for 2021	28,000
	Settlement rate for 2021	7%
	Actual return on plan assets for 2021	31,000
	Contributions for 2021	29,000
	Benefits paid to retirees during 2021	24,000
	Amortization of prior years service costs	17,500

Answer rating: 100% (QA)

Pension Worksheet for the Year Ended December 3 1 2020 Pension Worksheet For the Year Ended 2020 Items Project Benefit Obligation Plan Assets Annual P... View the full answer