Question

On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances. Projected benefit obligation $4,460,000 Fair value of plan assets 4,150,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $503,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $150,000 $182,000 Prior service cost amortization 0 92,000 Contributions (funding) to the plan 243,000 279,000 Benefits paid 199,000 278,000 Actual return on plan assets 249,000 257,000 Expected rate of return on assets 6 % 8 %

For 2021, prepare the journal entry to record pension-related amounts. (Credit account titles are automatically indented when 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 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

Answer 1