The following defined pension data of Rydell Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $560,000 Plan assets, 1/1/20 546,200 Pension liability, 1/1/20 13,800 On January 1, 2020, Rydell Corp., through plan amendment, grants prior service benefits having a present value of 120,000 Settlement rate 9% Service cost 58,000 Contributions (funding) 65,000 Actual (expected) return on plan assets 52,280 Benefits paid to retirees 40,000 Prior service cost amortization for 2020 17,000 Instructions For 2020, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

The following defined pension data of Rydell Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $560,000 Plan assets, 1/1/20 546,200 Pension liability, 1/1/20 13,800 On January 1, 2020, Rydell Corp., through plan amendment, grants prior service benefits having a present value of 120,000 Settlement rate 9% Service cost 58,000 Contributions (funding) 65,000 Actual (expected) return on plan assets 52,280 Benefits paid to retirees 40,000 Prior service cost amortization for 2020 17,000 Instructions For 2020, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

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 2MC

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Instructions

For 2020, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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Projected benefit obligation, 1/1/20 (before amendment)	$560,000
Plan assets, 1/1/20	546,200
Pension liability, 1/1/20	13,800
On January 1, 2020, Rydell Corp., through plan amendment, grants prior service benefits having a present value of	120,000
Settlement rate	9%
Service cost	58,000
Contributions (funding)	65,000
Actual (expected) return on plan assets	52,280
Benefits paid to retirees	40,000
Prior service cost amortization for 2020	17,000