Sheffield Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the company’s actuary provided the following information.

Accumulated other comprehensive loss (PSC)		$147,800
Pension plan assets (fair value and market-related asset value)		200,300
Accumulated benefit obligation		255,000
Projected benefit obligation		378,600

The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2020, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $48,200; the projected benefit obligation was $485,500; fair value of pension assets was $280,300; the accumulated benefit obligation amounted to $364,100. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,000. The company’s current year’s contribution to the pension plan amounted to $69,000. No benefits were paid during the year.

1. Determine the components of pension expense that the company would recognize in 2020. (With only one year involved, you need not prepare a worksheet.) (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)

Components of Pension Expense
Service Cost	48,200
Interest on Projected Benefit Obligation	37,860
Actual Return on Plan Assets	-11,000
Unexpected Loss	-9,030
Amortization of Gain or Loss	0
Amortization of Prior Service Cost	14,780
Pension Expense	80,810

2. Prepare the journal entry to record the pension expense and the company’s funding of the pension plan in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Other Comprehensive Income (G/L)	????
Pension Expense	80,810
Cash		69,000
Pension Asset/Liability		????
Other Comprehensive Income (PSC)		14,780

3. Compute the amount of the 2020 increase/decrease in gains or losses and the amount to be amortized in 2020 and 2021.

4. Indicate the pension amounts reported in the financial statement as of December 31, 2020.

for number 2 Other Comprehensive Income (G/L) isn't 19,530 and Pension Asset/Liability isn't 16,560

Answer rating: 100% (QA)

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