Quiz chap 20 - Memo Entries Annual OCI Pension Projected...

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Quiz Chapter 20 Accounting 3312 Spring 2011 Name:_____________________________
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M a r l i n C o r p o r a t i o n P e n s i o n W o r k S h e e t - 2 0 1 1 Preparing a pension work sheet. The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2011: Service cost $500,000 Actual return on plan assets 260,000 Annual contribution to the plan 900,000 Amortization of prior service cost 105,000 Benefits paid to retirees 60,000 Settlement rate 10% Expected rate of return on plan assets 8% The accumulated benefit obligation at December 31, 2011, amounted to $4,250,000. Instructions (a) Using the above information for Marlin Corporation, complete the pension work sheet for 2011. Indicate (credit) entries by parentheses. Calculated amounts should be supported. (b) Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2011.
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Marlin Corporation Pension Work Sheet-2011 General Journal Entries
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Unformatted text preview: Memo Entries Annual OCI Pension Projected Pension Gain / Asset / Benefit Plan Expense Cash PSC Loss Liability Obligation Assets Bal.,Dec. 31,2010 625,000 (1,000,000) (3,750,000) 2,750,000 Service Cost 500,000 (500,000) Interest Cost 375,000 (375,000) Actual return (260,000) 260,000 Unexpected 40,000 (40,000) gain/loss ( 315,000) (315,000) Amortization 105,000 (105,000) of PSC Contributions (900,000) 900,000 Benefits Gain/loss amort. 60,000 (60,000) Journal entry for 2011 Balance, Dec. 31, 2011 _760,000___ (900,000) ___ (105,000)____ 520,000_____ (355,000)__ (355,000)__ ___ 600,000____ (400,000)_____ ____ (4,250,000) _____ ____ 3,850,000__ ___ (1)2,750,000*8% = 220,000 (2) 4565000-4250000=315000 Pension Expense 760,000 Pension Asset / Liability 600,000 Cash 900,000 Other Comprehensive Income (PSC) 105,000 Other Comprehensive Income (G/L) 355,000...
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Quiz chap 20 - Memo Entries Annual OCI Pension Projected...

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