Linda Bertsler Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan.
January 1,2008 December 31,2008
Vested benefit obligation $1,500 $1,900
Accumulated benefit obligation 1,900 2,730
Projected benefit obligation 2,800 3,645
Plan assets (fair value) 1,700 2,620
Settlement rate and expected rate of
Pension asset/liability 1,100 ?
Service cost for the year 2008 400
Contributions (funding in 2008) 800
Benefits paid in 2008 200
Instructions:(provide all computation)
Using the information about Linda Berstler Company's defined benefit pension plan, prepare a 2008 pension worksheet with supplementary schedules of computations. Prepare journal entries at December 31,2008, to record pension expense and related pension transactions. Also, indicate the pension amounts reported in the balance sheet.(please see attached worksheet for Balance for January 1)
Pension for Linda Bertsler Company is examined. A benefit pension plan is created.