The accountant for Jarvis Corporation has developed the following information for the company's defined-benefit pension plan for
Question:
The accountant for Jarvis Corporation has developed the following information for the company's defined-benefit pension plan for 2020: Plan assets, January 1 2,750,000 Projected benefit obligation, January 1 3,750,000 Pension asset/liability, January 1 1,000,000 Accumulated OCI (PSC), January 1 625,000 Service cost 500,000 Actual return on plan assets 260,000 Contribution to the plan 900,000 Amortization of prior service cost 105,000 Increase in projected benefit obligation due to changes in actuarial assumptions 50,000 Benefits paid to retirees 60,000 Settlement rate 10% Expected rate of return on plan assets 8%
Required:
(1) Complete the pension worksheet for 2020.
(2) Prepare the journal entry to record the pension-related amounts for 2020.
(3) For those pension-related items that appear on the balance sheet, indicate the manner in which they would be reported on the balance sheet as of December 31, 2020.
Items | Annual Pension Expense | Cash | OCI—Prior Service Cost | OCI--- Gain/Loss | Pension Asset/Liability | Projected Benefit Obligation | Plan Assets |
Expert Answer:
