(Worksheet for E20-13)
Erikson Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.
January 1 December 31
Vested benefit obligation $1,500 $1,900
Accumulated benefit obligation 1,900 2,730
Projected benefit obligation 2,500 3,300
Plan assets (fair value) 1,700 2,620
Settlement rate and expected rate of return 10%
Pension asset/liability 800 ?
Service cost for the year 2012 400
Contributions (funding in 2012) 700
Benefits paid in 2012 200
Prepare a 2012 pension worksheet with supplementary schedules of computations. Prepare the journal entries at December 31, 2012, to record pension expense and related pension transactions. Also, indicate the pension amounts reported in the balance sheet. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. If answer is zero, please enter 0 do not leave any fields blank.))
General Journal Entries
Memo Record Entries
OCI – Gain/Loss
Balance, Jan. 1, 2012
Journal entry for 2012 Dr. Cr. Dr. Dr.
Acc. OCI, Dec. 31, 2011 Dr.
Balance, Dec. 31, 2012
Journal entries 12/31/12
Description/Account Debit Credit
Balance Sheet at December 31, 2012
Accumulated other comprehensive loss – G/L