Question

Flint Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.

Plan assets		$470,900
Projected benefit obligation		609,900
Pension asset/liability		139,000
Accumulated OCI (PSC)		99,800	Dr.

As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.

Service cost		$93,800
Settlement rate, 10%
Actual return on plan assets		54,500
Amortization of prior service cost		19,800
Expected return on plan assets		51,300
Unexpected loss from change in projected benefit obligation,    due to change in actuarial predictions		74,300
Contributions		99,100
Benefits paid retirees		85,600

Using the data above, compute pension expense for Flint Corp. for the year 2020 by preparing a pension worksheet.

Prepare the journal entry for pension expense for 2020.

Answer 1