On January 1, 2013, Laura's Living Company has the following defined benefit pension plan balances Accumulated Postretirement
Question:
On January 1, 2013, Laura's Living Company has the following defined benefit pension plan balances
Accumulated Postretirement benefit obligation .....................$5,700,000
Fair value of plan assets .........................................................$7,200,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2014, the company amends the plan so that prior service costs of $350,000 were created. Other data related to the pension plan are as follows:
Instructions:
(a) Prepare a worksheet for the postretirement plan for 2013 & 2014.
(b) For 2014, prepare the journal entry to record pension-relatedamounts
2013 2014 Service costs Prior service costs amortization Contributions (funding) to the plan168,000 Benefits paid Actual return on plan assets Expected rate of return on assets 150,000 S165,000 63,000 194,000 190,000 220,000 576,000 498,000 0 80%
Step by Step Answer:
a Lauras Living Company Pension Worksheet x 2013 and 2014 General Journal Entries Memo Record Items ...View the full answer
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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