Computing and Recording Additional Pension Liability
The following balances relate to the defined benefit pension plan of Cameron Industries:
|
|
Dec 31, 2008 |
Dec 31, 2009 |
|
Fair value of the pension fund |
$149,000 |
$160,000 |
|
Market related value of the pension fund |
|
|
|
(5 year weighted average) |
145,000 |
152,000 |
|
PBO |
173,200 |
191,600 |
|
ABO |
159,100 |
172,900 |
|
Prepaid/(accrued) pension cost |
4,200 |
(1,950) |
|
Unrecognized prior service cost |
8,200 |
6,300 |
|
Unrecognized net pension loss |
20,200 |
23,350 |
Instructions:
1. Determine the additional pension liability, if any, at December 31, 2008, and December 31, 2009.
2. Prepare journal entries for the additional pension liability adjustment, if any, at December 31, 2008, and December 31, 2009. Assume that the company had not previously recognized additional pension liability under FASB Statement No. 87.