The following facts apply to the pension plan of Boudreau Inc. for the year 2012. Plan assets,

Question:

The following facts apply to the pension plan of Boudreau Inc. for the year 2012.

Plan assets, January 1, 2012                                 $490,000
Projected benefit obligation, January 1, 2012        490,000
Settlement rate                                                                8%
Service cost                                                               40,000
Contributions (funding)                                            25,000
Actual and expected return on plan assets               49,700
Benefits paid to retirees                                            33,400

Instructions
Using the preceding data, compute pension expense for the year 2012. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2012 and the year-end balances in the related pension accounts.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0470587287

14th Edition

Authors: kieso, weygandt and warfield.

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