Accounting/Pension

Skysong Co. has the following defined benefit pension plan balances on January 1, 2020.

Projected benefit obligation$4,619,000Fair value of plan assets4,619,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $595,000 are created. Other data related to the pension plan are:

20202021Service cost$151,000$169,000Prior service cost amortization089,000Contributions (funding) to the plan201,000186,000Benefits paid220,000283,000Actual return on plan assets253,000347,000Expected rate of return on assets6%8%Prepare a pension worksheet for the pension plan in 2020. (Enter all amounts as positive.)

SKYSONG COMPANY
Pension Worksheet—2020General Journal Entries  Memo RecordItems Annual Pension
ExpenseCashOCI—Prior
Service CostOCI— Gain/
LossPension Asset/
Liability  Projected Benefit
ObligationPlan
AssetsBalance, Jan. 1, 2020$    Dr.Cr. $    Dr.Cr. $    Dr.Cr. $    Dr.Cr. $    Dr.Cr.  $    Dr.Cr. $    Dr.Cr. Service cost   Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.     Dr.Cr.    Dr.Cr. Interest cost   Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.     Dr.Cr.    Dr.Cr. Actual return   Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.     Dr.Cr.    Dr.Cr. Unexpected loss   Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.     Dr.Cr.    Dr.Cr. Contributions   Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.     Dr.Cr.    Dr.Cr. Benefits   Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.     Dr.Cr.    Dr.Cr. Journal entry for 2020$    Dr.Cr. $    Dr.Cr.    Dr.Cr.    Dr.Cr.    Dr.Cr.     Dr.Cr.    Dr.Cr. Accumulated OCI Dec. 31, 2019   Dr.Cr.    Dr.Cr.    Dr.Cr.     Dr.Cr.    Dr.Cr. Balance, Dec. 31, 2020$    Dr.Cr. $    Dr.Cr. $    Dr.Cr.  $    Dr.Cr. $    Dr.Cr. 

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List of Accounts

   Prepare any journal entries related to the pension plan that would be needed at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

DateAccount Titles and ExplanationDebitCreditDec. 31, 2020

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List of Accounts

   Prepare a pension worksheet for 2021. (Enter all amounts as positive.)

SKYSONG COMPANY
Pension Worksheet—2020 and 2021General Journal EntriesMemo RecordItemsAnnual Pension
ExpenseCashOCI—Prior
Service CostOCI— Gain/
LossPension Asset/
LiabilityProjected Benefit
ObligationPlan
AssetsBalance, Jan. 1, 2020$4,619,000Cr.$4,619,000Dr.Service cost$151,000Dr.151,000Cr.Interest cost461,900Dr.461,900Cr.Actual return253,000Cr.253,000Dr.Unexpected loss24,140Dr.$24,140Dr.Contributions$201,000Cr.201,000Dr.Benefits220,000Dr.220,000Cr.Journal entry for 2020$335,760Dr.$201,000Cr.24,140Dr.$158,900Cr.Accumulated OCI Dec. 31, 20190Balance, Dec. 31, 2020$24,140Dr.$158,900Cr.5,011,900Cr.4,853,000Dr.Additional PSC, 1/1/2021  Dr.Cr.  Dr.Cr.$   Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Balance, Jan. 1, 2021  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Service cost  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Interest cost  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Actual return  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Unexpected loss  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Amortization of PSC  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Contribution  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Benefits  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Journal entry for 2021$   Dr.Cr.$   Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Accumulated OCI, Dec. 31, 2020  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.  Dr.Cr.Balance, Dec. 31, 2021$   Dr.Cr.$   Dr.Cr.$   Dr.Cr.$   Dr.Cr.$   Dr.Cr.

eTextbook and Media

List of Accounts

   Prepare journal entries related to the pension plan as of December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

DateAccount Titles and ExplanationDebitCreditDec. 31, 2020

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List of Accounts

   Indicate the pension-related amounts reported in the 2021 financial statements.

Skysong Co.
Partial Income Statement
 December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021  DividendsOperating ExpensesNet Income / (Loss)Retained Earnings, January 1, 2021Retained Earnings, December 31, 2021RevenuesTotal ExpensesTotal RevenuesOther Income / Expenses  Asset Gain (Loss)Comprehensive Income (Loss)Liability Gain (Loss)Pension ExpensePrior Service Cost AmortizationOther Comprehensive Income (Loss)$   DividendsOperating ExpensesNet Income / (Loss)Retained Earnings, January 1, 2021Retained Earnings, December 31, 2021RevenuesTotal ExpensesTotal RevenuesOther Income / Expenses  Asset Gain (Loss)Comprehensive Income (Loss)Liability Gain (Loss)Pension ExpensePrior Service Cost AmortizationOther Comprehensive Income (Loss)$
Skysong Co.
Balance Sheet (Partial)
 December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021  Current AssetsIntangible AssetsLiabilitiesLong-term InvestmentsProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal Long-term InvestmentsTotal Property, Plant and EquipmentTotal Stockholders' Equity  Accounts PayableAccounts ReceivableAccumulated DepreciationAccumulated Other Comprehensive Income (G/L)Accumulated Other Comprehensive Loss (G/L)Accumulated Other Comprehensive Income (PSC)Accumulated Other Comprehensive Loss (PSC)Common StockPension LiabilityRetained Earnings$   Current AssetsIntangible AssetsLiabilitiesLong-term InvestmentsProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal Long-term InvestmentsTotal Property, Plant and EquipmentTotal Stockholders' Equity  Accounts PayableAccounts ReceivableAccumulated DepreciationAccumulated Other Comprehensive Income (G/L)Accumulated Other Comprehensive Loss (G/L)Accumulated Other Comprehensive Income (PSC)Accumulated Other Comprehensive Loss (PSC)Common StockPension LiabilityRetained Earnings$   Accounts PayableAccounts ReceivableAccumulated DepreciationAccumulated Other Comprehensive Income (G/L)Accumulated Other Comprehensive Loss (G/L)Accumulated Other Comprehensive Income (PSC)Accumulated Other Comprehensive Loss (PSC)Common StockPension LiabilityRetained Earnings

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