Final-CH20-EX13.Final - 200,000 Dr. 200,000 Cr. Journal...

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XERCISE 20-13 (Continued) 20-24 Note to instructor : To prove the amounts reported, a worksheet might be prepared as follows: Journal Entries Memo Record Annual Pension Expense Cash Prepaid/ Accrued Cost Projected Benefit Obligation Plan Assets Unrecognized Prior Service Cost Unrecognized Net Gain or Loss Balance, Jan. 1, 2007 0 2,000,000 Cr. 800,000 Dr. * 1,200,000 Dr.* 0 (a) Service cost 77,000 Dr. 77,000 Cr. (b) Interest cost 200,000 Dr. 200,000 Cr. (c) Actual return** 80,000 Cr. 80,000 Dr. (d) Amortization of PSC 115,000 Dr. 115,000 Cr. (e) Contributions 250,000 Cr. 250,000 Dr. (f) Liability gain
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Unformatted text preview: 200,000 Dr. 200,000 Cr. Journal entry, Dec. 31 312,000 Dr. 250,000 Cr. 62,000 Cr. Balance, Dec. 31, 2007 62,000 Cr. 2,077,000 Cr. 1,130,000 Dr. 1,085,000 Dr. * 200,000 Cr. *This number is a plug as the problem states there is no unrecognized gain or loss. **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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