Homework answers / question archive / Floki Company has a defined benefit pension plan with LastHartford Trust Company

Floki Company has a defined benefit pension plan with LastHartford Trust Company

Accounting

Share With

Floki Company has a defined benefit pension plan with LastHartford Trust Company. On December 31, 2020 Plan Assets were $500,000 while the Pension Benefit Obligation was $480,000.During 2020, Last Hartford paid benefits to retirees of $40,000. In addition, expected earnings were $60,000 while actual earnings were $50,000. The service cost for the year was $70,000, and the interest cost or settlement cost was $55,000. Floki contributed $120,000 during the year to the pension fund.
There were no amortizations of prior service cost nor other comprehensive income gains or losses. There were no plan amendments at the beginning or end of the year.


Help me make a schedule to determine the beginning balance of the Pension/Asset Liability account for Floki at January 1, 2020. State if it is an asset or a liability. Use a pension worksheet if necessary.