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Ch 20 HWp - Chapter 20 Homework E 20-1 Given Actual and...

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Chapter 20 Homework E 20-1 Given: Actual and expected return on plan assets 15,000 Benefits paid to retirees 40,000 Contributions 90,000 Interest/discount rate 10% Prior service cost amortization 8,000 PBO Jan 1 2010 500,000 Service Cost 60,000 a Compute pension expense for 2010 Service cost 60,000 given Interest cost ($500,000 x .10) 50,000 Actual (expected) return on plan assets (15,000) Unrecognized prior service cost amortization 8,000 Pension expense for 2010 103,000 b JE to record pension expense and employer's contribution Pension Expense 103,000 Cash 90,000 given Pension Asset / Liability (90 - 103 +8) 5,000 OCI (PSC) 8,000 E 20- 4 Given: Plan assets Jan 1, 2010 490,000 PBO Jan 1, 2010 490,000 Settlement rate 8.0% Annual pension service cost 40,000 Contributions 25,000 Actual return on plan assets 49,700 Benefits paid 33,400 Compute pension expense for 2010. Prepare worksheet. Pension Work Sheet - 2010 General Journal Entries Memo Record Annual Pension Projected Pension Asset / Liability Benefit Plan Items Expense Cash Obligation Assets Balance, Jan 1, 2010 (490,000) 490,000 (a) Service cost given 40,000 (40,000) (b) Interest cost ** 39,200 (39,200) (c) Actual return given (49,700) 49,700 (d) Contributions given (25,000) 25,000 (e) Benefits given 33,400 (33,400) Journal entry, Dec 31 29,500 (25,000) (4,500) Balance, Dec 31, 2010 (4,500) (535,800) 531,300 ** b 39,200 = 490,000 x .08
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E 20 - 5 Five employees participating in pension. Expected future service years at beginning of 2010: Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 Jan1, 2010 co amended plan increasing PBO by $72,000 Compute the prior service cost amortization
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