Copy of 20e-7-2 - 546200 (a) Prior service cost (100000)...

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Exercise 20-7, Page 1 of 1, 05/12/2009, 20:30:44 The following defined pension data of Doreen Corp. apply to the year 2008: Projected benefit obligation, 1/1/08 (before amendment) $560,000 Plan assets, 1/1/08 546,200 Prepaid/accrued pension cost (credit) 13,800 On January 1, 2008, Doreen Corp., through plan amendment, grants prior service benefits having a present value of 100,000 Settlement rate 9% Annual pension service cost 58,000 Contributions (funding) 55,000 Actual (expected) return on plan assets 52,280 Benefits paid to retirees 40,000 Prior service cost amortization for 2008 17,000 Instructions: Doreen Corp. Pension Work Sheet—2008 General Journal Entries Memo Record Items Cash Balance, January 1, 2008 (13800) (560000)
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Unformatted text preview: 546200 (a) Prior service cost (100000) 100000 New balance, January 1, 2008 (13800) (660000) 546200 100000 (b) Service cost 58000 (58000) (c) Interest cost 59400 (50400) (d) Actual return (52280) 52280 (e) Amortization of PSC 17000 (17000) (f) Contributions (55000) 55000 (g) Benefits 40000 (40000) Journal entry, December 31 82120 (55000) (27120) Balance, December 31, 2008 (40920) (728400) 613480 83000 For 2008, prepare a pension work sheet for Doreen Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. Annual Pension Expense Prepaid/ Accrued Cost Projected Benefit Obligation Plan Assets Unrecognized Prior Service Cost...
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This note was uploaded on 09/30/2008 for the course ACC 423 taught by Professor Trinahall during the Fall '08 term at University of Phoenix.

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