Xyz Company provides the following information about its defined benefit pension plan for the year 2020....

Xyz Company provides the following information about its defined benefit pension plan for the year 2020.

Service cost	$91,600
Contribution to the plan	104,400
Prior service cost amortization	10,800
Actual and expected return on plan assets	64,600
Benefits paid	40,300
Plan assets at January 1, 2020	650,000
Projected benefit obligation at January 1, 2020	692,000
Accumulated OCI (PSC) at January 1, 2020	150,000
Interest/discount (settlement) rate	11	%

Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020. (Enter all amounts as positive.)

Xyz COMPANY
Pension Worksheet—2020.

General Journal Entries

Memo Record

Items

Annual
Pension Expense

Cash

OCI
Prior Service Cost

Pension Asset/
Liability

Projected Benefit
Obligation

Plan
Assets

Balance, January 1, 2020

Service cost

Interest cost

Actual return

Amortization of PSC

Contributions

Benefits

Journal entry for 2020

Accumulated OCI, Dec. 31, 2019

Balance, Dec. 31, 2020

B) Prepare the journal entry recording pension expense.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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