Question: The following facts apply to the pension plan of Trudy

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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