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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
XERCISE 20-15 (40–50 minutes) 20-27 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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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 )...
View Full Document

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.

Ask a homework question - tutors are online