The following facts apply to the pension plan of Trudy Borke Inc. for the year 2008. Plan
Question:
The following facts apply to the pension plan of Trudy Borke Inc. for the year 2008.
Plan assets, January 1, 2008....................................................$490,000
Projected benefit obligation, January 1, 2008....................490,000
Settlement rate.....................................................................................8.5%
Annual pension service cost.........................................................40,000
Contributions (funding)..................................................................30,000
Actual return on plan assets.........................................................49,700
Benefits paid to retirees..................................................................33,400
Instructions
Using the preceding data, compute pension expense for the year 2008. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2008 and the year-end balances in the related pension accounts.
Step by Step Answer:
Pension Expense Pension expense Service cost Interest cost Amortization of pri...View the full answer
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
