(Pension Worksheet) Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2012, 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 2012, the following additional data are provided by the actuary.
|
Service cost for 2012 |
$90,000 |
|
Settlement rate, 9% Actual return on plan assets in 2012 |
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 in 2012 |
99,000 |
|
Benefits paid retirees in 2012 |
85,000 |
Instructions
(a) Using the data above, compute pension expense for Webb Corp. for the year 2012 by preparing a pension worksheet.
(b) Prepare the journal entry for pension expense for 2012.