Purchase Solution

Accounting Problem - Pension Plan Worksheet

Not what you're looking for?

Ask Custom Question

P20-1

(2 year reconciliation schedule) On January 1, 2008, Diana Peter Company has the following defined benefit pension plan balances.

Projected benefit obligation $4,200,000
Fair Value of plan assets 4,200,000

The interest (Settlement) rate applicable to the plan is 10% . On January 1, 2009, the company amends its pension agreement so that prior service cost of $500,000 are created. Other data related to the pension plan are as follows.

2008 2009

Service Cost $150,000 $180,000

Unrecognized prior service costs
Amortization -0- -0-

Contribution (funding) to the plan 140,000 185,000

Benefit Paid 200,000 280,000

Actual Return on plan assets 252,000 260,000

Expected rate of return on assets 6% 8%

Instructions:

(a) Prepare a pension worksheet for the pension plan for 2008 and 2009
(b) As of December 31, 2009, Prepare a schedule reconciling the funded status with the reported liability (accrued pension cost).

Purchase this Solution

Solution Summary

The solution examines pension plan worksheets

Purchase this Solution


Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.