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Blue Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with...

Blue Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $203,100; projected benefit obligation $252,000. Other data relating to 3 years’ operation of the plan are as follows.

2019

2020

2021
Annual service cost $15,800 $19,000 $26,200
Settlement rate and expected rate of return 10 % 10 % 10 %
Actual return on plan assets 18,200 22,280 23,600
Annual funding (contributions) 15,800 39,400 47,600
Benefits paid 14,300 16,400 21,000
Prior service cost (plan amended, 1/1/20) 162,000
Amortization of prior service cost 55,300 42,200
Change in actuarial assumptions establishes
   a December 31, 2021, projected benefit obligation of:		 524,400

1) Prepare a pension worksheet presenting all 3 years’ pension balances and activities.

2) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.

3)nIndicate the pension-related amounts reported in the financial statements for 2021.

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ekkarill92 answered 2 years ago
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