vThe following data relate to the operation of Riverbed Co.s pension plan in 2021. Service cost $60,180 Actual return on plan assets 32,640 Amortization of prior service cost 28,560 Annual contributions 52,020 Benefits paid retirees 27,540 Average service life of all employees 25 years
vThe following data relate to the operation of Riverbed Co.s pension plan in 2021. Service cost $60,180 Actual return on plan assets 32,640 Amortization of prior service cost 28,560 Annual contributions 52,020 Benefits paid retirees 27,540 Average service life of all employees 25 years
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 6MC
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Transcribed Image Text:Unexpected
loss
2,550
Cr.
$2,550
Dr.
Amortization
of PSC
35,700
Dr.
$35,700
Cr.
Contributions
$41,820
Cr.
41,820
Dr.
Benefits
15,300
Dr.
15,300
Cr.
Increase in
44,370
Dr.
44,370
Cr.
PBO
РВО
Journal entry
for 2020
$61,710
Dr.
$41,820
Cr.
35,700
Cr.
46,920
Dr.
31,110
Cr.
Accumulated
OCI, Dec. 31,
2019
81,600
Dr.
$407,490 Cr.
Balance, Dec.
31, 2020
$45,900
Dr.
$46,920
Dr.
$153,510
Cr.
$253,980
Dr.
For 2021, Riverbed will use the same assumptions as 2020 for the expected rate of returns on plan
assets. The settlement rate for 2021 is 10%.
Transcribed Image Text:VThe following data relate to the operation of Riverbed Co's pension plan in 2021.
Service cost
$60,180
Actual return on plan assets
32,640
Amortization of prior service cost
28,560
Annual contributions
52,020
Benefits paid retirees
27,540
Average service life of all
employees
25
years
The pension worksheet for 2020 is presented below.
RIVERBED
COMPANY
Worksheet
-2020
General
Memo
Journal
Entries
Record
Annual
Pension
Еxpense
OCI-
Gain/Loss
Projected
Benefit
Items
Cash
OCI-
Prior
Service
Pension
Plan
Asset/Liability
Assets
Obligation
Cost
$331,500
Balance, Jan.
1, 2020
$122,400
Cr.
Cr.
S209,100
Dr.
Service cost
$20,400
Dr.
20,400
Cr.
Interest cost
26,520
Dr.
26,520
Cr.
Actual return
18,360
Cr.
18,360
Dr.
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