Solution to Assignment #3 - Work Sheet

Solution to - × 6 3 Interest cost = B.B of ABO 582,400 × 7 4 Asset gain = Actual return 41,400 expected return 27,642 5 Amortization of PSC =

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Items Beg. balance, 1/1/2008 45,600 Dr. 1 582,400 Cr. 460,700 Dr. 91,600 Dr. 75,700 Dr. Current service cost 80,500 Dr. 80,500 Cr. Benefits paid 72,000 Dr. 72,000 Cr. Contributions 148,000 Cr. 148,000 Dr. Expected return (6%) 27,642 Cr. 27,642 Dr. 2 Interest cost (7%) 40,768 Dr. 40,768 Cr. 3 Asset gain 13,758 Dr. 4 13,758 Cr. Amortization of PSC (13 yrs) 7,046 Dr. 7,046 Cr. 5 Amortization of actuarial loss 1,343 Dr. 1,343 Cr. 6 Expense entry 102,015 Dr. 102,015 Cr. Cash contribution entry 148,000 Cr. 148,000 Dr. Ending balance, 12/31/2008 91,585 Dr. 631,668 Cr. 578,100 Dr. 84,554 Dr. 60,599 Dr. Notes: 1. Net balance of ABO, plan assets, unrecognized PSC, and unrecognized actuarial loss. 2. Expected return = B.B. of plan assets 460,700
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Unformatted text preview: × 6% 3. Interest cost = B.B. of ABO 582,400 × 7% 4. Asset gain = Actual return 41,400 - expected return 27,642 5. Amortization of PSC = Unrecognized PSC 91,600 ÷ 13 years 6. Amortization of actuarial loss (corridor approach) = (Unrecognized actuarial loss 75,700 - 10% × B.B. of ABO 582,400) ÷ 13 years Accrued Benefit Obligation Unrecog. Actuarial Gain/Loss Plan Assets Unrecog. PSC Solution to Assignment #3 - Worksheet General Journal Entries Memo Record ABC Corp. Pension Worksheet − 2008 Annual Pension Expense Cash Accrued Pension Asset/ Liability...
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This note was uploaded on 10/16/2010 for the course ACCO Acco 320 taught by Professor Luohe during the Spring '10 term at Concordia Canada.

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