Adjusting Additional Pension Liability
At the end of 2006, Garns Corporation recorded an additional pension liability of $800,000 for the first time, the offset being charged to Deferred Pension Cost. Minimum pension liability computations for 2007–2010 indicated the following additional pension liability amounts:
|
December 31, 2007 |
$ 850,000 |
|
December 31, 2008 |
1,000,000 |
|
December 31, 2009 |
500,000 |
|
December 31, 2010 |
550,000 |
No plan amendments occurred during these years. The amount of the unrecognized prior service cost is as follows:
|
December 31, 2007 |
$1,200,000 |
|
December 31, 2008 |
900,000 |
|
December 31, 2009 |
600,000 |
|
December 31, 2010 |
300,000 |
Instructions: For each of the four years, prepare the journal entry to adjust the minimum pension liability account to the balance indicated above.