Pension Worksheet Webb Corp. sponsors a defined-benefit

(Pension Worksheet) Webb Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2010, the following balances relate to this plan.

Plan assets                                             $480,000

Projected benefit obligation                 600,000

Pension asset/liability                            120,000

Accumulated OCI (PSC)                         100,000

As a result of the operation of the plan during 2010, the following additional data are provided by the actuary.

Service cost .................................................................................... $90,000

Settlement rate, ..................................................................................... 9%

Actual return on plan assets .......................................................... 55,000

Amortization of prior service cost ................................................. 19,000

Expected return on plan assets ..................................................... 52,000

Unexpected loss from change in projected benefit obligation, 

    due to change in actuarial predictions ..................................... 76,000

Contributions ................................................................................... 99,000

Benefits paid retirees ..................................................................... 85,000


(a) Using the data above, compute pension expense for Webb Corp. for the year 2010 by preparing a pension worksheet.

(b) Prepare the journal entry for pension expense for 2010.

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