Question

Ayayai Corporation is a privately owned company that uses ASPE. On January 1, 2020 Ayayai’s nancial records indicated the following information related to the company’s dened benet pension plan:
Dened Benet Obligation   $1,350,000 Pension Plan Assets   1,500,000
Ayayai Corporation’s actuary provided the following information on December 31, 2020:
Current year service cost   $83,000 Prior service cost, granted Jan 1, 2020   170,000 Employer contributions for the year   83,000 Benets paid to retirees   25,000 Expected return on assets   5% Actual return on assets   6% Discount rate   5%
Prepare a pension worksheet for Ayayai Corporation for 2020.

Headings:
Annual Pension Expense Cash
Net Dened Liability/ Asset
Dened Benet Obligation Plan Assets
Balance, January 1, 2020

Data lines under the headings of the form:
Current Service Cost
Past Service Cost
Net Interest/Finance Cost
Asset Remeasurement Gain/Loss
Employer Contributions to Pension Fund
Benets Paid to Retirees from Pension Fund
Pension Expense Entry - 2020
Net Funding Entry
Balance, December 31, 2020
  
Prepare pension plan journal entries for Ayayai Corporation for 2020. (Credit account titles are automatically indented when the 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.)
Account Titles and Explanation Debit Credit
(To record pension expense)
(To record payment to the pension fund)

Answer 1