AC302-01_Unit 6_Assignment_Marjorie Bowden

AC302-01_Unit 6_Assignment_Marjorie Bowden - Pitchford...

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Unformatted text preview: Pitchford Company adopted a defined benefit pension plan on January 1, 2010, at which time it awarded retroactive benefits to its employees. The following information is available in regard to this plan: Prior service cost on 1/1/10 related to retroactive benefits: $300,000 (not funded) Planned amortization of prior service cost: 25,000 per year Pension expense for 2010 ($95,000 funded) 105,000 * Fair value of plan assets, end of 2010 95,000 Projected benefit obligation, end of 2010 380,000 *Includes amortization of prior service cost Required Prepare all the journal entries related to Pitchford Company’s pension plan for 2010. E20-9 Pension Expense and Liability Name: Marjorie Bowden An asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s). If you are still getting a red asterisk, and think the answer is correct, but used a formula in the cell try manually typing in the answer according to the rounding instructions. Required Prepare all the journal entries related to Pitchford Company’s pension plan for 2010. Other Comprehensive Income: Prior Service Cost 300,000 Accrued/Prepaid Pension Cost 300,000 Pension Expense 105,000 Cash 95,000 Accrued/Prepaid Pension Cost 10,000 To record pension expense for 2010. Accrued/Prepaid Pension Cost 25,000 Other Comprehensive Income: Prior Service Cost 25,000 To adjust accumulated other comprehensive income for amortized prior service cost for 2010. E20-9 Pension Expense and Liability To record liability for prior service cost at beginning of 2010. Name: Solutions An asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s). If you are still getting a red asterisk, and think the answer is correct, but used a formula in the cell try manually typing in the answer according to the rounding instructions. Required Prepare all the journal entries related to Pitchford Company’s pension plan for 2010. Other Comprehensive Income: Prior Service Cost 300,000 Accrued/Prepaid Pension Cost 300,000 Pension Expense 105,000 Cash 95,000 Accrued/Prepaid Pension Cost 10,000 To record pension expense for 2010. Accrued/Prepaid Pension Cost 25,000 Other Comprehensive Income: Prior Service Cost 25,000 To adjust accumulated other comprehensive income for amortized prior service cost for 2010. E20-9 Pension Expense and Liability To record liability for prior service cost at beginning of 2010. On January 1, 2010, the Smith Company adopted a defined benefit pension plan. At that time, the company awarded retroactive benefits to its employees, resulting in a prior service cost that created a projected benefit obligation of $1,250,000 on that date (which it did not fund). The company decided to amortize the prior service cost by the straight-line method over the 20-year average remaining service life of its active participating employees. The company’s actuary has also provided the following additional information for 2010 and 2011: (1) service cost: 2010, $147,000; 2011, $153,000; (2) expected...
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This note was uploaded on 08/23/2011 for the course AC 302 taught by Professor Knight during the Spring '11 term at Kaplan University.

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AC302-01_Unit 6_Assignment_Marjorie Bowden - Pitchford...

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