Rollo Company maintains a defined benefit pension plan with First Cranston Trust. Below
are the balances reported by First Cranston on January 1, 2020.
Planned Benefit Obligation				$520,000
Plan Assets				$650,000
At the beginning of 2020, First Cranston Trust informed Rollo that due to amending the program for
prior service for new employees, they need to deposit $180,000. Other matters for 2020 were:
The settlement rate is 10%.
Current service cost is $40,000.
Expected earnings are 10% on beginning of the year Plan Assets.
Actual earnings are $62,000.
Prior service cost amortization is $25,000.
First Cranston Trust paid retirement benefits of $35,000.
Rollo funded the plan $120,000.
Prepare a pensions worksheet below:
Prepare the pension journal entry below: