Excel_Project_3_James_Holliday - Name: Problem: Course:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: James Holliday Problem: P20-1, Two-Year Work Sheet and Reconciliation Schedule Course: AC557 Date: 1/23/2011 On January 1, 2010, Cunningham Company has the following definedbenefit pension plan balances. Projected benefits obligation $4,500,000 Fair value of plan assets 4,200,000 The interest (settlement) rate applicable to the plan is 10% On January 1, 2011, the company amends its pension agreement so that service costs of $500,000 are created. Other data related to the pension plan are as follows: 2010 2011 Service costs $150,000 $180,000 Prior service costs amortization 0 90,000 Contributions (funding) to the plan 240,000 285,000 Benefits paid 200,000 280,000 Actual return on plan assets 252,000 260,000 Expected rate of return on assets 6% 8% Instructions: CUNNINGHAM COMPANY Pension Work Sheet—2010 and 2011 General Journal Entries Memo Record Items Cash OCI - Gain/Loss Balance, Jan. 1, 2010 300,000 4,500,000 4,200,000 (a) Service cost 150,000 150,000 (b) Interest cost 450,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/01/2011 for the course FINANCE 516 taught by Professor Anderson during the Spring '11 term at Keller Graduate School of Management.

Page1 / 2

Excel_Project_3_James_Holliday - Name: Problem: Course:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online