Pension Work Sheet
On January 1 of Year 1, the company had a projected benefit obligation (PBO) of $10,000 and a pension fund with a fair value of $9,200.Unrecognized prior service cost was $2,000; it was being amortized on a straight line basis over the 5 year average remaining life of the affected employees. The balance in the unrecognized (or deferred) pension gain was $700. The following information relates to the pension plan during the year:
|
Service cost |
$1,200 |
|
Actual return on the pension fund |
$1,550 |
|
Benefits paid to retirees |
$300 |
|
Contribution to the pension fund |
$1,050 |
|
Discount rate for PBO |
8% |
|
Expected return on pension fund |
11% |
Enter all of the pension information, including the beginning balances, in a pension work sheet. Use the work sheet to display the computation of pension expense for the year as well as the ending balances for all pension related items.