Reference no: EM133101482

Question - Cheyenne Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.

Plan assets $484,800

Projected benefit obligation 616,900

Pension asset/liability 132,100

Accumulated OCI (PSC) 98,000 Dr.

As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.

Service cost $87,300

Settlement rate, 9%

Actual return on plan assets 56,500

Amortization of prior service cost 19,600

Expected return on plan assets 53,500

Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 77,500

Contributions 101,900

Benefits paid retirees 88,900

Required -

Part I - Using the data above, compute pension expense for Cheyenne Corp. for the year 2020 by preparing a pension worksheet.

Part II - Prepare the journal entry for pension expense for 2020.