The following data relate to the operation of Kramer Co.'s pension plan in 2020. The pension worksheet for 2019 is provided in P20.10.
Service cost.......................................$59,000
Actual return on plan assets......................32,000
Annual contributions..............................51,000
Benefits paid retirees..............................27,000
For 2020, Kramer will use a discount rate of 8%.
Instructions
a. Prepare a pension worksheet for 2020.
b. Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31.
c. Indicate the pension amounts reported in the financial statements.