Final-CH20-EX03.Final - 21,000 Cr 930,000 Cr 769,000 Dr...

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XERCISE 20-3 (15–25 minutes) 20-15 Rebekah Company Pension Worksheet—2008 General Journal Entries Memo Record Annual Pension Expense Cash Prepaid/ Accrued Cost Projected Benefit Obligation Plan Assets Unrecognized Prior Service Cost Balance, January 1, 2008 10,000 Cr. 800,000 Cr. 640,000 Dr. 150,000 Dr. (a) Service cost 90,000 Dr. 90,000 Cr. (b) Interest cost 80,000 Dr. 80,000 Cr. (c) Actual return* 64,000 Cr. 64,000 Dr. (d) Amortization of PSC 10,000 Dr. 10,000 Cr. (e) Contributions 105,000 Cr. 105,000 Dr. (f) Benefits 40,000 Dr. 40,000 Cr. Journal entry 116,000 Dr. 105,000 Cr. 11,000 Cr. Balance, January 31, 2008
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Unformatted text preview: 21,000 Cr. 930,000 Cr. 769,000 Dr. 140,000 Dr. (b) $80,000 = $800,000 X 10%. Reconciliation Schedule Projected benefit obligation $(930,000) Plan assets at fair value 769,000 Funded status (161,000) Unrecognized prior service cost 140,000 Prepaid/accrued pension cost $ (21,000 ) *Note: We show actual return on the worksheet to ensure that plan assets are properly reported. If expected and actual return differ, then an additional adjustment is made to compute the proper amount of pension expense....
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