Final-CH20-EX10.Fina - Dr 99,000 Cr 14,250 Cr Balance 59,250 Cr 762,250 Cr 551,000 Dr 81,000 Dr 71,000 Dr(b $56,250 = $625,000 X.09(d Expected

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XERCISE 20-10 (20–25 minutes) 20-20 (a) Buhl Corp. Pension Worksheet General Journal Entries Memo Record Items Annual Pension Expense Cash Prepaid/ Accrued Cost Projected Benefit Obligation Plan Assets Unrecognized Prior Service Cost Unrecognized Net Gain or Loss Balance, January 1, 2008 45,000 Cr. 625,000 Cr. 480,000 Dr. 100,000 Dr. (a) Service cost 90,000 Dr. 90,000 Cr. (b) Interest cost 56,250 Dr. 56,250 Cr. (c) Actual return 57,000 Cr. 57,000 Dr. (d) Unexpected gain 5,000 Dr. 5,000 Cr. (e) Amortization of PSC 19,000 Dr. 19,000 Cr. (f) Liability increase 76,000 Cr. 76,000 Dr. (g) Contributions 99,000 Cr. 99,000 Dr. (h) Benefits 85,000 Dr. 85,000 Cr. Journal entry 113,250
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Unformatted text preview: Dr. 99,000 Cr. 14,250 Cr. Balance, December 31, 2008 59,250 Cr. 762,250 Cr. 551,000 Dr. 81,000 Dr. 71,000 Dr. (b) $56,250 = $625,000 X .09. (d) Expected return = $52,000. Unexpected gain = Actual return minus expected return; $5,000 = $57,000 – $52,000. (b) Reconciliation Schedule—12/31/08 Projected benefit obligation (Credit) $(762,250) Plan assets at fair value (Debit) 551,000 Funded status (211,250) Unrecognized prior service cost (Debit) 81,000 Unrecognized net loss (Debit) 71,000 Prepaid/Accrued Pension Cost—Liability $ (59,250 )...
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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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