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ch20_sol

# ch20_sol - Name Solution Date Instructor Course...

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557c0beb4507c9ce94fb59aca03a9d3bc170fc55.xlsx, Exercise 20-1 Solution, Page 1 of 8, 03/29/2012, 01:32:38 Name: Solution Date: Instructor: Course: Actual and expected rate of return on plan assets \$15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Interest/discount rate 10% Prior service cost amortization 8,000 Projected benefit obligation, January 1, 2012 500,000 Service cost 60,000 Instructions: Computation of pension expense: Service cost \$60,000 Interest cost (\$500,000 × 10%) 50,000 Actual (expected) return on plan assets (15,000) Unrecognized prior service cost amortization 8,000 Pension expense for 2012 \$103,000 Pension Expense 103,000 Cash 90,000 Pension Asset/Liability 5,000 Other Comprehensive Income (PSC) 8,000 Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E20-1 (Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2012. (a) Compute pension expense for the year 2012. (b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2012.

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557c0beb4507c9ce94fb59aca03a9d3bc170fc55.xlsx, Exercise 20-1, Page 2 of 8, 03/29/2012, 01:32:39 Name: Date: Instructor: Course: Actual and expected rate of return on plan assets \$15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Interest/discount rate 10% Prior service cost amortization 8,000 Projected benefit obligation, January 1, 2012 500,000 Service cost 60,000 Instructions: Computation of pension expense: Text Title Amount Text Title Amount Text Title Amount Text Title Amount Text Title Formula Account Title Amount Account Title Amount Account Title Amount Account Title Amount Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E20-1 (Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2012. (a) Compute pension expense for the year 2012. (b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2012.
557c0beb4507c9ce94fb59aca03a9d3bc170fc55.xlsx, Exercise 20-7 Solution, Page 3 of 8, 03/29/2012, 01:32:39 Name: Solution Date: Instructor: Course: Projected benefit obligation, 1/1/12 (before amendment) \$560,000 Plan assets, 1/1/12 546,200 Pension liability 13,800 120,000 Settlement rate 9% Service cost 58,000 Contributions (funding) 65,000 Actual (expected) return on plan assets 52,280 Benefits paid to retirees 40,000 Prior service cost amortization for 2012 17,000 Instructions: RYDELL CORP. Pension Worksheet—2012 General Journal Entries Memo Record Items Cash Balance, January 1, 2011 (13,800) (560,000) 546,200 (a) Prior service cost 120,000 (120,000) New balance, January 1, 2012 (680,000) 546,200 (b) Service cost 58,000 (58,000) (c) Interest cost 61,200 (61,200) (d) Actual return (52,280) 52,280 (e) Amortization of PSC 17,000 (17,000) (f) Contributions (65,000) 65,000 (g) Benefits 40,000 (40,000) Journal entry, December 31 83,920 (65,000) 103,000 (121,920) Accumulated OCI, December 31, 2011 0 Balance, December 31, 2012 103,000 (135,720) (759,200) 623,480 Interest cost = \$560,000 + \$120,000 = \$680,000 × Settlement rate of 9% = \$61,200.

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ch20_sol - Name Solution Date Instructor Course...

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