Description of this paper

My attachment was just to follow a format to solve...

Description

Solution


Question

My attachment was just to follow a format to solve the problem. It is just one problem. The attachment is only to respond the question there under the tab P20-9. THANK YOU!!! (I am sorry if I sent the wrong attachment). Here it is again the problem and the attachment only for the answer format. "P20-8 (Comprehensive 2-Year Worksheet) Lemke Company sponsors a defined-benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2010 and 2011. 2010 2011 Projected benefit obligation, January 1 $600,000 Plan assets (fair value and market-related value), January 1 410,000 Pension asset/liability, January 1 190,000 Cr. Prior service cost, January 1 160,000 Service cost 40,000 $ 59,000 Settlement rate 10% 10% Expected rate of return 10% 10% Actual return on plan assets 36,000 61,000 Amortization of prior service cost 70,000 50,000 Annual contributions 97,000 81,000 Benefits paid retirees 31,500 54,000 Increase in projected benefit obligation due to changes in actuarial assumptions 87,000 ?0? Accumulated benefit obligation at December 31 721,800 789,000 Average service life of all employees 20 years Vested benefit obligation at December 31 464,000 Instructions (a) Prepare a pension worksheet presenting both years 2010 and 2011 and accompanying computations and amortization of the loss (2011) using the corridor approach. (b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (c) For 2011, indicate the pension amounts reported in the financial statements.

 

Paper#9764 | Written in 18-Jul-2015

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