WK 5 LT upload - (Comprehensive2YearWorksheet)

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(Comprehensive 2-Year Worksheet)  Glesen Company sponsors a defined benefit pension plan for its employees. The fol owing data relate to the operation of the plan for the years 2008 and 2009. (LO 5,6,7,8,9,10) 2008 2009 Projected benefit obligation, January 1   $650,000.00  Plan assets (fair value and market related value), January 1   $410,000.00  Prepaid/accrued pension cost (credit), January 1   $80,000.00  Additional pension liability, January 1   $12,300.00  Intangible asset-deferred pension cost, January 1  $12,300.00  Unrecognized prior service cost, January 1   $160,000.00  Service cost   $40,000.00   $59,000.00  Settlement rate  10% 10% Expected rate of return  10% 10% Actual return on plan assets   $36,000.00   $61,000.00  Amortization of prior service cost  $70,000.00   $55,000.00  Annual contributions  $72,000.00   $81,000.00  Benefits paid retirees  $31,500.00   $54,000.00  Increase in projected benefit obligation due to        changes in actuarial assumptions   $87,000.00   –0–  Accumulated benefit obligation at December 31   $721,800.00   $789,000.00  Average service life of al  employees   20 years  Vested benefit obligation at December 31  $464,000.00  (a) Prepare a pension worksheet presenting both years 2008 and 2009 and accompanying computations including the computation of the minimum liability (2008 and 2009) and amortization of the unrecognized loss (2009) using the corridor approach. General Journal Entries General Journal Entries Items Cash Prepaid Accrued Cost Additional Liability Items Cash Additional Liability Balance, Jan. 2008 80,000 Cr. 12,300 Cr. 12,300 Dr. Balance, Jan. 2008 142,000 Cr. 93,000 Cr 90,000 Dr. 3,300 Dr. Service Cost
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This note was uploaded on 01/14/2012 for the course ACCOUNTING ACC 423 taught by Professor Hannah during the Spring '09 term at University of Phoenix.

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WK 5 LT upload - (Comprehensive2YearWorksheet)

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