Test 3 no answers - Acct 3312 Spring 2011 Test 3 Name Page 1 1 Pension Worksheet Howard Corp sponsors a defined-benefit pension plan for its

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Acct. 3312 Spring 2011 Test 3 Name: __________________________ Page 1
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1. Avera ge remai ning servic e life of active emplo yees 10 years Instr uctio ns (a) Comp ute pensi on expen se for Howa rd Corp. for the year 2011 by prepa ring a pensi on works heet. (b) Prepa re the journ al entry Pension Worksheet Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2011, the following balances related to this plan. Plan assets $550,000 Projected benefit obligation 650,000 Pension asset/liability 100,000 Cr Prior service cost 75,000 OCI – Loss 75,000 As a result of the operation of the plan during 2011, the actuary provided the following additional data at December 31, 2011. Service cost for 2011 $ 75,000 Actual return on plan assets in 2011 45,000 Amortization of prior service cost 20,000 Contributions in 2011 115,000 Benefits paid retirees in 2011 70,000 Settlement rate 7%
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2. Lessee accounting—capital lease. Krause Company on January 1, 2011, enters into a ten-year non-cancelable lease, for
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This note was uploaded on 03/27/2012 for the course ACCT 3312 taught by Professor Staff during the Spring '08 term at Texas A&M University, Corpus Christi.

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Test 3 no answers - Acct 3312 Spring 2011 Test 3 Name Page 1 1 Pension Worksheet Howard Corp sponsors a defined-benefit pension plan for its

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