E20-4 - Boudreau Inc. Pension Worksheet-2012 Items General...

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E20-4 Your answer is correct. (Basic Pension Worksheet) The following facts apply to the pension plan of Boudreau Inc. for the year 2012. Plan assets, January 1, 2012 $490,000 Projected benefit obligation, January 1, 2012 490,000 Settlement rate 8% Service cost 40,000 Contributions (funding) 25,000 Actual and expected return on plan assets 49,700 Benefits paid to retirees 33,400 Using the preceding data, compute pension expense for the year 2012. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2012 and the year-end balances in the related pension accounts.
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Unformatted text preview: Boudreau Inc. Pension Worksheet-2012 Items General Journal Entries Memo Record Annual Pension Expense Cash Pension Asset/Liability Projected Benefit Obligation Plan Assets Balance, January 1, 2012 490,000 Cr. 490,000 Dr. Service cost 40,000 Dr. 40,000 Cr. Interest cost 39,200 Dr. 39,200 Cr. Actual return 49,700 Cr. 49,700 Dr. Contributions 25,000 Cr. 25,000 Dr. Benefits 33,400 Dr. 33,400 Cr. Journal entry, December 31 29,500 Dr. 25,000 Cr. 4,500 Cr. Balance, December 31, 2012 4,500 Cr. 535,800 Cr. 531,300 Dr....
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