Rebek Corporation provides the following information about its defined benefit pension plan for the year 2011: Service

Question:

Rebek provides the following information about its defined benefit pension plan for the year 2011:
Service cost ....................... $ 225,000
Contribution to the plan ...................262,500
Past service cost amortization................. 25,000
Actual and on plan assets ...........160,000
Benefits paid......................100,000
Accrued pension liability at Jan. 1, 2011 ........... 25,000
Plan assets at Jan. 1, 2011 .................. 1,600,000
Accrued benefit obligation at Jan. 1, 2011 ........... 2,000,000
Unrecognized past service cost balance at Jan. 1, 2011 .......375,000
Settlement rate ....................... 10%
Rebek uses the deferral and amortization approach to account for its defined benefit plan.
Instructions
(a) Prepare a continuity schedule for 2011 for the accrued benefit obligation.
(b) Prepare a continuity schedule for 2011 for the plan assets.
(c) Calculate pension expense for the year 2011.
(d) Prepare all pension journal entries recorded by Rebek in 2011.
(e) What pension amount will appear on Rebek’s at December 31, 2011? Balance Sheet
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