Week 5 Team Assignments - P20 - 8: (Comprehensive 2-Year W...

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Unformatted text preview: P20 - 8: (Comprehensive 2-Year W Glesen Company sponsors a defined benefit pension plan for its employees. The following data relates to the operation of the plan for the hears 2008 and 2009. Projected benefit obligation, Jan. 1 $650,000 Plan assets (fair value and market related value), Jan. 1 410,000 Prepaid/accrued pension cost (credit), Jan. 1 80,000 Additional pension liability, Jan. 1 12,300 Intangible asset-deferred pension cost, Jan. 1 12,300 Unrecognized prior service cost, Jan. 1 160,000 Service cost 40,000 Settlement rate 10% Expected rate of return 10% Actual return on plan assets 36,000 Amortization of prior service cost 70,000 Annual contributions 72,000 Benefits paid to retirees 31,000 Increase in projected benefit obligation due to changes in actuarial assumptions 87,000 Accumulated benefit obligation, at December 31 721,800 Average service life of all employees Vested benefit obligation, at December 31 a) Prepare a pension worksheet presenting both years 2008 and 2009 and accompanying computations includ minimum liability (2008 and 2009) and amortization of the unrecognized loss (2009) using the corridor ap Glesen Company Pension Worksheet - 2008 & Annual Prepaid/ Pension Accrued Additional Item Expense Cash Cost Liability Balance, Jan. 1, 2008 80,000 (Cr.) 12,300 (C (a) Service cost 40,000 (Dr.) (b) Interest cost 65,000 (Dr.) (c) Actual return 36,000 (Cr.) (d) Unexpected loss 5,000 (Cr.) (e) Amortization of PSC 70,000 (Dr.) (f) Contributions 72,000 (Cr.) (g) Benefits (h) Liability loss (i) Minimum liability adjustment 81,000 (Cr. Balance, Dec. 31, 2008 142,000 (Cr.) 93,000 (Dr 2008 General Journal Entries Journal entry for 2008 134,000 (Dr.) 72,000 (Cr.) 62,000 (Cr.) (j) Service cost 59,000 (Dr.) (k) Interest cost 81,050 (Dr.) (l) Actual return 61,000 (Cr.) (m) Unexpected gain 12,350 (Dr.) (n) Amortization of PSC 55,000 (Dr.) (o) Contributions...
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This note was uploaded on 04/09/2010 for the course ACC 423 acc 423 taught by Professor Mr.youknowwho during the Spring '10 term at University of Phoenix.

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Week 5 Team Assignments - P20 - 8: (Comprehensive 2-Year W...

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