Final-CH20-EX07.Final - EXERCISE 20-7(1525 minutes Items...

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Unformatted text preview: EXERCISE 20-7 (1525 minutes) Items Balance, January 1, 2008 (a) Prior service cost New balance, January 1, 2008 (b) Service cost (c) Interest cost (d) Actual return* (e) Amortization of PSC (f) Contributions (g) Benefits Journal entry, December 31 Balance, December 31, 2008 (c) $59,400 = $660,000 X .09. Doreen Corp. Pension Worksheet--2008 General Journal Entries Annual Prepaid/ Projected Pension Accrued Benefit Expense Cash Cost Obligation 13,800 Cr. 560,000 Cr. 100,000 Cr. 13,800 Cr. 660,000 Cr. 58,000 Dr. 58,000 Cr. 59,400 Dr. 59,400 Cr. 52,280 Cr. 17,000 Dr. 55,000 Cr. 40,000 Dr. 82,120 Dr. 55,000 Cr. 27,120 Cr. 40,920 Cr. 737,400 Cr. Memo Record Unrecognized Plan Prior Assets Service Cost 546,200 Dr. ________ 100,000 Dr. 546,200 Dr. 100,000 Dr. 20-18 52,280 Dr. 17,000 Cr. 55,000 Dr. 40,000 Cr. 613,480 Dr. 83,000 Dr. *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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This note was uploaded on 04/13/2008 for the course ACCOUNTING BUS4062 taught by Professor Daniels during the Spring '08 term at Capital University.

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