Final-CH20-PR01.Final - 90,000 Dr. 90,000 Cr. (l) Funding...

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SOLUTIONS TO PROBLEMS 20-40 (a) Diana Peter Company Pension Worksheet—2008 and 2009 General Journal Entries Memo Record Items Annual Pension Expense Cash Prepaid/ Accrued Cost Projected Be- nefit Ob- ligation Plan Assets Unrecognized Prior Service Cost Unrecognized Net Gain or Loss Balance, Jan. 1, 2008 4,200,000 Cr. 4,200,000 Dr. (a) Service cost 150,000 Dr. 150,000 Cr. (b) Interest cost 420,000 Dr. 420,000 Cr. (c) Actual return 252,000 Cr. 252,000 Dr. (d) Funding 140,000 Cr. 140,000 Dr. (e) Benefits 200,000 Dr. 200,000 Cr. Journal entry, 12/31/08 318,000 Dr. 140,000 Cr. 178,000 Cr. Balance, Dec. 31, 2008 178,000 Cr. 4,570,000 Cr. 4,392,000 Dr. (f) Prior service cost, 1/1/09 500,000 Cr. 5,070,000 Cr. 500,000 Dr. (g) Service cost 180,000 Dr. 180,000 Cr. (h) Interest cost 507,000 Dr. 507,000 Cr. (i) Actual return 260,000 Cr. 260,000 Dr. (j) Unexpected loss 91,360 Cr. 91,360 Dr. (k) Amortization of PSC
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Unformatted text preview: 90,000 Dr. 90,000 Cr. (l) Funding 185,000 Cr. 185,000 Dr. (m) Benefits 280,000 Dr. 280,000 Cr. Journal entry, 12/31/09 425,640 Dr. 185,000 Cr. 240,640 Cr. Balance, Dec. 31, 2009 418,640 Cr. 5,477,000 Cr. 4,557,000 Dr. 410,000 Dr. 91,360 Dr. (b) $420,000 = $4,200,000 X 10%. (h) $507,000 = $5,070,000 X 10%. (j) $91,360 = ($4,392,000 X .08) $260,000. (b) Reconciliation Schedule12/31/09 Projected benefit obligation $(5,477,000) Fair value of plan assets 4,557,000 Funded status (920,000) Unrecognized prior service cost 410,000 Unrecognized net (gain) or loss 91,360 Accrued pension cost liability $ (418,640 ) Note to instructor: Minimum liability can not be determined, because the Accumulated Benefit Obligation is not provided. PROBLEM 20-1...
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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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