Quiz 3 ??????Name ___________________________________________________________
VanPersieCorp. sponsors a defined benefit pension plan for its employees.The following balancesrelated to the plan exist onDecember 31, 2009.
Plan assets (marketvalue)???$450,000
Projected benefit obligation???600,000
Pension asset/liability????150,000 Cr.
VanPersieamends the pension plan, effective 1/1/2010, and the actuary informs VanPersiethat the Prior Service Cost associated with the amendment equals $90,000.
As a result of the operation of the plan during 2010, the actuary provided the following additional dataonDecember 31,2010.
Service cost for2010????$ 75,000
Actual return on plan assets in2010?? 45,000
Amortization of prior service cost?? 20,000
Contributions in2010???115,000
Benefits paid retirees in2010?? 70,000
Settlement rate?????7%
Expected return rate?????8%
Instructions
(a)Compute pension expense forVanPersieCorp. for the year2010by preparingthe attachedpension worksheet.
(b)Prepare the journal entry for pension expense.
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General Journal Entries |
Memo Record |
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Other Comprehensive Income |
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Items |
Pension Expense |
Cash |
Prior Service Cost |
Gains/Losses |
Pension Asset/Liability |
PBO |
Plan Assets |
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