E20-10B (Pension Worksheet with Reconciliation Schedule) Dade Shutters Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2007, the following balances relate to this plan. Plan assets $1,650,000 Projected benefit obligation 1,960,000 Pension liability 310,000 Prior service cost 240,000 As a result of the operation of the plan during 2007, the following additional data are provided by the actuary. Service cost for 2007 $133,000 Settlement rate, 6% Actual return on plan assets in 2007 108,000 Amortization of prior service cost 24,000 Expected return on plan assets 160,000 Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions 211,000 Contributions in 2007 143,000 Benefits paid retirees in 2007 178,000 Instructions (a) Using the data above, compute pension expense for Dade Shutter for the year 2007 by preparing a pension worksheet. (b) Prepare the journal entry for pension expense for 2007.
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