The following data relate to the operation of Kramer Co.'s pension plan in 2021. The pension worksheet for 2020 is provided in P20.10. Service cost $59,000
Actual return on plan assets 32,000
Amortization of prior service cost 28,000
Annual contributions 51,000
Benefits paid retirees 27,000
Average service life of all employees 25 years
For 2021, Kramer will use the same assumptions as 2020 for the expected rate of returns on plan assets. The settlement rate for 2021 is 10%.
Instructions
Prepare a pension worksheet for 2021 and accompanying computations and amortization of the loss, if any, in 2021 using the corridor approach.
Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events
at December 31.
Indicate the pension amounts reported in the financial statements.