E20-7 - Assets Balance, January 1, 2008 13,800 $560,000...

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E20-7 year 2008. Projected benefit obligation, 1/1/08 (before amendment) Plan assets, 1/1/08 Prepaid/accrued pension cost (credit) On January 1, 2008, Doreen Corp., through plan amendment, grants prior service benefits having a present value of Settlement rate Service cost Contributions (funding) Actual (expected) return on plan assets Benefits paid to retirees Prior service cost amortization for 2008 Instructions For 2008, prepare a pension worksheet for Doreen Corp. that shows the journal entry for p expense and the year-end balances in the related pension accounts. SOLUTIONS Doreen Corp Pension Worksheet -- 2008 General Jornal Entries Mem Annual Prepaid/ Projected Pension Accrued Benefit Plan Items Expence Cash Cost Obligation
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Unformatted text preview: Assets Balance, January 1, 2008 13,800 $560,000 546,200 a) Prior Service Cost 100,000 New Balance, January 1, 2008 13,800 $660,000 546,200 b) Service Cost 58,000 58,000 c) Interest Cost $59,400 $59,400 d) Actual Return 52,280 52,280 e) Amortization of PSC 17,000 f) Contributions 55,000 55,000 g) Benefits 40,000 40,000 Journal entry, Dec. 31 $82,120 55,000 $27,120 Balance, December 31, 2008 $40,920 $737,400 613,480 (LO 5 , 6 ) (Basic Pension Worksheet) The following defined pension data of Doreen Corp. apply to $560,000 546,200 13,800 100,000 9% 58,000 55,000 52,280 40,000 17,000 pension mo Record Unrecognized Prior Service Cost 100,000 100,000 17,000 83,000 to the...
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E20-7 - Assets Balance, January 1, 2008 13,800 $560,000...

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