1. Pension worksheets for the Simpson Company for years ended December 31, 2020 and 2021. 2. Journal entries to record the pension expense for both years. 3. A reconciliation schedule for both years. Assumptions for 2011: Plan assets, January 1, 2020 $ 450,000 Projected benefit obligation, January 1, 2020 450,000 Annual service cost for 2020 27,000 Settlement rate for 2020 7% Actual return on plan assets for 2020 30,000 Contributions for 2020 32,000 Benefits paid to retirees during 2020 17,000 Pension Asset/Liability, January 1, 2020 - Assumptions for 2012: Present value of prior years service cost benefits granted January 1, 2021 $ 42,000 Annual service cost for 2021 28,000 Settlement rate for 2021 7% Actual return on plan assets for 2021 31,000 Contributions for 2021 29,000 Benefits paid to retirees during 2021 24,000 Amortization of prior years service costs 17,500
1. Pension worksheets for the Simpson Company for years ended December 31, 2020 and 2021. 2. Journal entries to record the pension expense for both years. 3. A reconciliation schedule for both years. Assumptions for 2011: Plan assets, January 1, 2020 $ 450,000 Projected benefit obligation, January 1, 2020 450,000 Annual service cost for 2020 27,000 Settlement rate for 2020 7% Actual return on plan assets for 2020 30,000 Contributions for 2020 32,000 Benefits paid to retirees during 2020 17,000 Pension Asset/Liability, January 1, 2020 - Assumptions for 2012: Present value of prior years service cost benefits granted January 1, 2021 $ 42,000 Annual service cost for 2021 28,000 Settlement rate for 2021 7% Actual return on plan assets for 2021 31,000 Contributions for 2021 29,000 Benefits paid to retirees during 2021 24,000 Amortization of prior years service costs 17,500
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 1E
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Question
1. Pension worksheets for the Simpson Company for years ended December 31, 2020 and 2021.
2.
3. A reconciliation schedule for both years.
| Assumptions for 2011: | ||
| Plan assets, January 1, 2020 | $ 450,000 | |
| Projected benefit obligation, January 1, 2020 | 450,000 | |
| Annual service cost for 2020 | 27,000 | |
| Settlement rate for 2020 | 7% | |
| Actual return on plan assets for 2020 | 30,000 | |
| Contributions for 2020 | 32,000 | |
| Benefits paid to retirees during 2020 | 17,000 | |
| Pension Asset/Liability, January 1, 2020 | - | |
| Assumptions for 2012: | ||
| Present value of prior years service cost benefits | ||
| granted January 1, 2021 | $ 42,000 | |
| Annual service cost for 2021 | 28,000 | |
| Settlement rate for 2021 | 7% | |
| Actual return on plan assets for 2021 | 31,000 | |
| Contributions for 2021 | 29,000 | |
| Benefits paid to retirees during 2021 | 24,000 | |
| Amortization of prior years service costs | 17,500 |
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