At January 1, 2020, Headland Company had plan assets of $286,300 and a projected benefit obligation...

At January 1, 2020, Headland Company had plan assets of $286,300 and a projected benefit obligation of the same amount. During 2020, service cost was $28,400, the settlement rate was 10%, actual and expected return on plan assets were $25,500, contributions were $20,600, and benefits paid were $17,900.

Prepare a pension worksheet for Headland Company for 2020.

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Answer
Explanation :

HEADLAND COMPANY PENSION WORKSHEET FOR 2020

	General Journal	Memo Record
Items	Pension Expense	Cash	Pension Asset/ Liability	Projected Benefit Obligations	Plan Asset
01-01-2020				$286,300 Cr.	$286,300 Dr.
Service Cost	$28,400 Dr.			$28,400 Cr.
Interest Cost	$28,630 Dr.			$28,630 Cr.
Actual Return	$25,500 Cr.				$25,500 Dr.
Contribution		$20,600 Cr.			$20,600 Dr.
Benefits				$17,900 Dr.	$17,900 Cr.
Journal Entry 12/3/2020	$31,530 Dr.	$20,600 Cr.	$10,930 Cr.
Ending Balance			$10,930 Cr.	$325,430 Cr.	$314,500 Dr.

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