Question

The following facts apply to the pension plan of Trudy Borke Inc. for the year 2010.
Plan assets, January 1, 2010.....................................................£490,000
Defined benefit obligation, January 1, 2010............................. 490,000
Discount rate .................................................................................8.5%
Service cost..................................................................................40,000
Contributions (funding) ..............................................................30,000
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 2010. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2010 and the year-end balances in the related pension accounts.



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  • CreatedJune 17, 2013
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