Quiz Chapter 20 - Marlin Corporation Pension Work...

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Quiz Chapter 20 Name: _______________________________________ 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 $630,000 Actual return on plan assets 294,000 Annual contribution to the plan 950,000 Amortization of prior service cost 145,000 Benefits paid to retirees 90,000 Settlement rate 10% Expected rate of return on plan assets 8% 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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Unformatted text preview: Marlin Corporation Pension Work Sheet-2011 General Journal Entries Memo Entries Annual OCI Pension Projected Pension Gain / Asset / Benefit Plan Expense Cash PSC Loss Liability Obligation Assets Bal.,Dec. 31,2010 735,000 (1,100,000) (4,150,000) 3,050,000 Service Cost 630,000 (630,000) Interest Cost 415,000 (415,000) Actual return (294,000) 294,000 Unexpected 50,000 (50,000) gain/loss Amortization of PSC 145,000 (145,000) Contributions (950,000) 950,000 Benefits Gain/loss amort. 90,000 (90,000) Journal entry for 2011 Balance, Dec. 31, 2011 _946,000 (950,000) (145,000)_ _____ (50,000) _____ 199,000 (901,000) ____ 5,105 ,000 ____ 4,204,000 Pension Exp. 946000 Pension liab. 199000 OCI-Gain 50000 Cash 950000 OCI-PSC 145000 Page 2...
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Quiz Chapter 20 - Marlin Corporation Pension Work...

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