Exercise 20-10 (Part Level Sub

Question

Exercise 20-10 (Part Level Submission)Oriole Corp. sponsors a defined benefit pension plan for itsemployees. On January 1, 2020, the following balances relate tothis plan.Plan assets$469,100Projected benefit obligation575,200Pension asset/liability106,100Accumulated OCI (PSC)97,900Dr.As a result of the operation of the plan during 2020, the followingadditional data are provided by the actuary.Service cost$90,500Settlement rate, 8%Actual return on plan assets56,400Amortization of prior service cost18,800Expected return on plan assets53,400Unexpected loss from change in projected benefitobligation,   due to change in actuarial predictions75,600Contributions98,500Benefits paid retirees89,100(a)Using the data above, compute pension expense for Oriole Corp.for the year 2020 by preparing a pension worksheet.(Enter all amounts as positive.)  Answer:  Pension Worksheet2020ItemsAnnual PensionExpenseCashOCI-Prior ServiceCostOCI-Gain/(Loss)PensionAsset/liabilityProjected benefitobligationPlanAssetBalance, Jan1,2020$    (106,100.00)$       (575,200.00)$     469,100.00ServiceCost$     90,500.00$         (90,500.00)InterestCost$     46,016.00$         (46,016.00)Actualreturn$   (56,400.00)$       56,400.00Unexpectedgain$       3,000.00$            3,000.00$                      -  Amortisation ofPSC$     18,800.00$   (18,800.00)Liabilityincreases$       (75,600.00)$         (75,600.00)Contributions$   (98,500.00)$       98,500.00Benefits$            89,100.00$     (89,100.00)Journal entry for2020$   101,916.00$   (98,500.00)$   (18,800.00)$       (72,600.00)$      (57,216.00)$       (123,016.00)$       65,800.00Accumulated OCI dec 31,2019$     97,900.00$                         -  Balance, December 31,2020$     79,100.00$       (72,600.00)$    (163,316.00)$       (698,216.00)$     534,900.00Net Pension Expense for2020$   101,916.00Journal entry31-12-2020Account title &explainationDebitCreditPension Expense$   101,916.00OCI(Gain/loss)$     72,600.00OCI(PSC)$     18,800.00Cash$     98,500.00Net PensionAsset/liability$     57,216.00(Being pension expense andremeasurement loss recorded)· Please do upvote if you found the answeruseful.· Feel free to reach in the comment section in case of anyclarification or queries.

Accepted Answer

Here is the solution for your q...

Pension Worksheet2020
Items	Annual PensionExpense	Cash	OCI-Prior ServiceCost	OCI-Gain/(Loss)	PensionAsset/liability	Projected benefitobligation	PlanAsset
Balance, Jan1,2020					$ (106,100.00)	$ (575,200.00)	$ 469,100.00
ServiceCost	$ 90,500.00					$ (90,500.00)
InterestCost	$ 46,016.00					$ (46,016.00)
Actualreturn	$ (56,400.00)						$ 56,400.00
Unexpectedgain	$ 3,000.00			$ 3,000.00			$ –
Amortisation ofPSC	$ 18,800.00		$ (18,800.00)
Liabilityincreases				$ (75,600.00)		$ (75,600.00)
Contributions		$ (98,500.00)					$ 98,500.00
Benefits						$ 89,100.00	$ (89,100.00)

Journal entry for2020	$ 101,916.00	$ (98,500.00)	$ (18,800.00)	$ (72,600.00)	$ (57,216.00)	$ (123,016.00)	$ 65,800.00
Accumulated OCI dec 31,2019			$ 97,900.00	$ –
Balance, December 31,2020			$ 79,100.00	$ (72,600.00)	$ (163,316.00)	$ (698,216.00)	$ 534,900.00


Net Pension Expense for2020	$ 101,916.00

Journal entry31-12-2020
Account title &explaination	Debit	Credit
Pension Expense	$ 101,916.00
OCI(Gain/loss)	$ 72,600.00
OCI(PSC)		$ 18,800.00
Cash		$ 98,500.00
Net PensionAsset/liability		$ 57,216.00
(Being pension expense andremeasurement loss recorded)

· Please do upvote if you found the answeruseful.
· Feel free to reach in the comment section in case of anyclarification or queries.

Exercise 20-10 (Part Level Sub

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"

Need help with your Assignment?

Exercise 20-10 (Part Level Sub

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"

Need help with your Assignment?

Sometimes it is hard to do all the work on your own