Final-CH20-EX15.Final - adjustment 345 Cr 345 Dr Journal...

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E X E R C I S E   2 0 - 1 5   ( 4 0 5 0   m i n u t e s ) 2 0 - 2 7 Linda Berstler Company Pension Worksheet—2008 General Journal Entries Memo Record Entries Items Annual  Pension Expense Cash Prepaid/  Accrued  Cost Additional  Liability Pension  Intangible  Asset Projected  Benefit  Obligation Plan  Assets Unrecognized Prior Service Cost Unrecognized Net Gain or Loss Balance, Jan. 1, 2008 2,800 Cr. 1,700 Dr. 1,100 Dr. (a) Service cost 400 Dr. 400 Cr. (b) Interest cost 280 Dr. 280 Cr. (c) Actual return 320 Cr. 320 Dr. (d) Unexpected gain 150 Dr. 150 Cr. (e) Amortization of PSC 55 Dr. 55 Cr. (f) Funding 800 Cr. 800 Dr. (g) Benefits 200 Dr. 200 Cr. (h) Liability change  (increase) 365 Cr. 365 Dr. (i) Minimum liability adjustment                            345 Cr. 345 Dr. Journal entry—2008 565  Dr. 800  Cr. 235  Dr.           
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Unformatted text preview: adjustment 345 Cr. 345 Dr. Journal entry—2008 565 Dr. 800 Cr. 235 Dr. Balance, Dec. 31, 2008 235 Dr. 345 Cr. 345 Dr. 3,645 Cr. 2,620 Dr. 1,045 Dr. 215 Dr. (b) $2,800 X 10% (c) $320 = ($2,620 – $1,700) – ($800 – $200) (d) Actual return $320 Expected return ($1,700 X 10%) 170 Asset gain $150 (e) $1,100 X 1/20 = $55 (h) $365 = $3,645 – ($2,800 + $400 + $280 – $200) (i) Accumulated benefit obligation, 12/31/08 $(2,730) Plan asset at fair value 2,620 Minimum liability (110) Prepaid pension cost 235 Additional liability $ (345 )...
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