Question 17Swifty Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid.1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500.2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020.3. As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid.4. Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020. (c) Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Swifty Company for the year 2020.Swifty CompanyIncome Statement (Partial)choose the accounting period select an income statement item select an income statement item $enter a dollar amount Swifty CompanyComprehensive Income Statementchoose the accounting period select a comprehensive income item $XXXXselect an opening section name select a comprehensive income item enter a dollar amountselect a closing name for this statement $XXXXSwifty CompanyBalance Sheet (Partial)choose the accounting period select an opening name for section one select a balance sheet item $enter a dollar amount select an opening name for section two select a balance sheet item $enter a dollar amount

Pension expense is the amount charged to expense by a company in respect to its employee pension…

Answered: Company sponsors a defined benefit…

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 7RE

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(c)

Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Swifty Company for the year 2020.

Swifty Company Income Statement (Partial) choose the accounting period
select an income statement item
select an income statement item		$enter a dollar amount

Swifty Company Comprehensive Income Statement choose the accounting period
select a comprehensive income item		$XXXX
select an opening section name
select a comprehensive income item		enter a dollar amount
select a closing name for this statement		$XXXX

Swifty Company Balance Sheet (Partial) choose the accounting period
select an opening name for section one
select a balance sheet item			$enter a dollar amount
select an opening name for section two
select a balance sheet item			$enter a dollar amount

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1.		The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500.
2.		The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020.
3.		As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid.
4.		Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020.