Sage Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $460,800
Projected benefit obligation 616,200
Pension asset/liability 155,400
Accumulated OCI (PSC) 95,200 Dr.
As a result of the operation of the plan during 2017, the following additional data are provided by the actuary.
Service cost $88,500
Settlement rate, 10%
Actual return on plan assets 54,100
Amortization of prior service cost 19,700
Expected return on plan assets 51,300
Unexpected loss from change in projected benefit obligation,
due to change in actuarial predictions 74,700
Contributions 102,700
Benefits paid retirees 82,800
Instructions:
1. Using the data above, compute pension expense for Webb Corp. for the year 2020 by preparing a pension worksheet.
2. Prepare the journal entry for pension expense for 2020.