Using the information in E16-9, prepare a pension worksheet inserting January 1, 2008, balances, showing December 31,
Question:
Using the information in E16-9, prepare a pension worksheet inserting January 1, 2008, balances, showing December 31, 2008, balances and the journal entry recording pension expense.
Service cost...............................................................................................$ 90,000
Contribution to the plan.......................................................................105,000
Prior service cost amortization.............................................................10,000
Actual and expected return on plan assets.....................................64,000
Benefits paid..................................................................................................40,000
Pension liability at January 1, 2008...................................................160,000
Plan assets at January 1, 2008..............................................................640,000
Projected benefit obligation at January 1, 2008............................800,000
Accumulated other comprehensive income (PSC)
balance at December 31, 2007.............................................................150,000
Interest/discount (settlement) rate............................................................10%
Expected ReturnThe expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Pension Worksheet January 1 2008 Balances Service cost 90000 Contribution ...View the full answer
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
