Class10 - Solutions - EXERCISE 20-1 (a) Computation of...

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EXERCISE 20-1 (a) Computation of pension expense: Service cost. ............................................ $ 60,000 Interest cost ($500,000 x .10). ................ 50,000 Expected return on plan assets. ............ (12,000) Prior service cost amortization. ............. 8,000 Pension expense for 2010. ..................... $106,000 (b) Pension Expense. ........................................... 106,000 Cash. ......................................................... 95,000 Pension Asset /Liability. ......................... 3,000 Other Comprehensive Income (PSC). ... 8,000 1
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EXERCISE 20-4 2 Trudy Borke Inc. Pension Worksheet—2011 General Journal Entries Memo Record Items Annual Pension Expense Cash Pension Asset / Liability Projected Benefit Obligation Plan Assets Balance, January 1, 2011 490,000 Cr. 490,000 Dr. Service cost 40,000 Dr. 40,000 Cr. Interest cost* 41,650 Dr. 41,650 Cr. Actual return** 49,700 Cr. 49,700 Dr. Contributions
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This note was uploaded on 12/04/2009 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Class10 - Solutions - EXERCISE 20-1 (a) Computation of...

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