Question

Bridgeport Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.

Plan assets		$469,800
Projected benefit obligation		607,000
Pension asset/liability		137,200
Accumulated OCI (PSC)		97,100	Dr.

As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.

Service cost		$91,100
Settlement rate, 8%
Actual return on plan assets		54,400
Amortization of prior service cost		19,100
Expected return on plan assets		51,600
Unexpected loss from change in projected benefit obligation,    due to change in actuarial predictions		79,700
Contributions		99,500
Benefits paid retirees		85,800

Using the data above, compute pension expense for Bridgeport Corp. for the year 2020 by preparing a pension worksheet.

Answer 1

	Annual		Prior		Pension	Projected
	Pension		service	Gain/	Asset/	Benefit	Plan
	Expense	Cash	Cost	Loss	Liability	Obligation	Assets
Balance, Jan 1 2020			97,100		(137,200)	(607,000)	469,800
Service Cost	91,100					(91,100)
Interest Cost	48,560					(48,560)
Asset Return	(54,400)						54,400
Return Adjustment	2,800			(2,800)
Amortization Prior service cost	19,100		(19,100)
Loss from change in PBO				79,700		(79,700)
Contribution		(99,500)					99,500
Benefit Paid						85,800	(85,800)
Journal Entry	107,160	(99,500)	(19,100)	76,900	(65,460)
Balance., Dec. 31, 2020	-	-	78,000	76,900	(202,660)	(740,560)	537,900
Pension Expense	107,160
OCI Gain/Loss.	76,900
Other Comprehensive Income (PSC)		19,100
Cash		99,500
Pension Asset/Liability		65,460

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