Question

Mount Co. has the following defined benefit pension plan balances on January 1, 2010.
Defined benefit obligation ............$4,500,000
Fair value of plan assets ..................4,500,000
The discount rate applicable to the plan is 10%. On January 1, 2011, the company amends its pension agreement so that past service costs of $600,000 are created. Other data related to the pension plan are:


Instructions
(a) Prepare a pension worksheet for the pension plan in 2010.
(b) Prepare any journal entries related to the pension plan that would be needed at December 31, 2010.
(c) Prepare a pension worksheet for 2011 and any journal entries related to the pension plan as of December 31, 2011.
(d) As of December 31, 2011, prepare a schedule reconciling the funded status with the reported pensionliability.


$1.99
Sales0
Views135
Comments0
  • CreatedJune 17, 2013
  • Files Included
Post your question
5000