Question

Using the information in E20-2 prepare a pension worksheet inserting January 1, 2010, balances, showing December 31, 2010, balances, the reconciliation schedule, and the journal entry recording pension expense.
In E20-2 Rebekah Company provides the following information about its defined benefit pension plan for the year 2010.
Service cost........................................................................... € 90,000
Contribution to the plan...........................................................105,000
Past service cost amortization ...................................................10,000
Actual and expected return on plan assets................................64,000
Benefits paid............................................................................40,000
Pension asset/liability at January 1, 2010.................................10,000
Plan assets at January 1, 2010 640,000
Defined benefit obligation at January 1, 2010.......................800,000
Unrecognized past service cost balance at January 1, 2010 150,000
Interest/discount rate ..................................................................10%

Instructions
Compute the pension expense for the year 2010.



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  • CreatedJune 17, 2013
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