Kalosi Week 3 P 20_1 INT ACCT III

Kalosi Week 3 P 20_1 INT ACCT III - Name: Problem: Course:...

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Name: Walter E. Kalosi Problem: P20-1, Two-Year Work Sheet and Reconciliation Schedule Course: Date: 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 450,000 450,000 (c) Actual return
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Kalosi Week 3 P 20_1 INT ACCT III - Name: Problem: Course:...

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