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Pronghorn Co. provides the following information about its postretirement benefit plan for the year 2020. Service...

Pronghorn Co. provides the following information about its postretirement benefit plan for the year 2020.

Service cost	$87,700
Prior service cost amortization	3,200
Contribution to the plan	60,500
Actual and expected return on plan assets	62,100
Benefits paid	39,000
Plan assets at January 1, 2020	704,000
Accumulated postretirement benefit obligation at January 1, 2020	763,900
Accumulated OCI (PSC) at January 1, 2020	101,900	Dr.
Discount rate	9	%

Prepare a worksheet inserting January 1, 2020, balances, showing December 31, 2020, balances, and the journal entry recording postretirement benefit expense. (Enter all amounts as positive.)

Solutions

Expert Solution

Pension Worksheet - 2020

General Journal Entries

Memo Record

Items

Postretire Expense

Cash

OCR Prior Service Cost

Pension Assets/ Liabilites

APBO

Plan Assets

Balance, jan. 01,2020

$59,900

$763,900.00

$704,000

Service Cost

$87,700

Dr.

$87,700

Interest cost -(763900 * 9%)

$68,751

Dr.

$68,751

Actual / Exp return

62,100

Cr.

62,100

Amortization of Prior service cost

3,200

Dr.

$3,200

Cr.

Contributions

$60,500

Cr.

$60,500

Benefits

39,000

Journal Entry for 2020

97,551

Dr.

$60,500

Cr.

3,200

Cr.

($33,851.00)

881,351

787,600

Accumulated OCI Prior service cost

101,900

Dr.

Balance, Dec.31, 2020

98,700

Dr.

93,751

881,351

787,600

Journal Entry

Date	Particulars	LF	Debit	Credit
	Pension Expense		$97,551
	Pension assets/liabilities		($33,851)
	Cash			$60,500
	OCI Prior Service Cost			3,200

ekkarill92 answered 11 months ago

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