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Chapter 20 - PSC Gain/Loss pension asset/liability...

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Name: __________________________ Problem chapter 20 1. Pension plan calculations and journal entry. On January 1, 2010, Redman Co. had the following balances: Projected benefit obligation \$900,000 Fair value of plan assets 750,000 Other data related to the pension plan for 2010: Service cost 340,000 Unrecognized prior service cost -0- Contributions to the plan 230,000 Benefits paid 100,000 Actual return on plan assets 50,000 Settlement rate 8% Expected rate of return 6% Instructions (a) Determine the projected benefit obligation at December 31, 2010. There are no net gains or losses. (b) Determine the fair value of plan assets at December 31, 2010. (c) Calculate pension expense for 2010. (d) Prepare the journal entry to record pension expense and the contributions for 2010. Items Pension expenses cash

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Unformatted text preview: PSC Gain/Loss pension asset/liability projected benefit obligation plan assets Jan 1 2010 (150,000) (900,000) 750,000 Service costs 340,000 (340,000) Interest cost 72,000 (72,000) Asset return (50,000) 50,000 unexpected gain 5,000 (5,000) Contributions (230,000) 230,000 Benefits paid 100,000 (100,000) Journal entry 367,000 (230,000) (5,000) (132,000) AOCI-12/31/10 Dec.31,2010 (5,000) (282,000) (1,212,000) 930,000 General Journal Entries Memo Record OCI Page 1 (a) the projected benefit obligation at December 31, 2010 = 1,212,000 (b) the fair value of plan assets at December 31, 2010 = 930,000 (c) pension expense for 2010 = 367,000 (d)journal entry Pension expense 367000 OCI-Gain/Loss 5000 Pension asset /liability 132000 Cash 230000 Page 2...
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Chapter 20 - PSC Gain/Loss pension asset/liability...

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