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Pension data for Freddie Johns Company include the following for 2020: Settlement rate 8% Expected return...

Pension data for Freddie Johns Company include the following for 2020:

Settlement rate 8%

Expected return on plan assets: 12%

Actual return on plan assets: $170,000

Service cost: $300,000

Est. remaining service life of employees 10 years

As of January 1, 2020:

PBO $1,500,000

Plan assets $1,700,000

AOCI – PSC $200,000

AOCI – Actuarial (G)/L $60,000

During 2020:

Amortization of prior service cost $25,000

Cash contributions to pension fund $240,000

Benefit payments to retirees $260,000

Prepare all journal entries necessary related to this pension for the year. You may use individual journal entries or a combined journal entry, but be sure to clearly support your answer with all necessary calculations and/or T-accounts. Also, you may choose to use the pension worksheet to support your answer, but the pension worksheet is not required.

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ekkarill92 answered 1 year ago
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