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Basic Pension Worksheet

The pension plan had assets of $490,000 and projected benefit obligations of $490,000 on January 1, 2012. During the year, the plan had service costs of $40,000, contributions of $25,000, actual returns of $49,700, and benefits paid of $33,400. The pension expense for 2012 is $29,500, as shown by the journal entry debiting pension expense for $29,500 and crediting the pension plan assets for $25,000 and the projected benefit obligation for $4,500. At year-end, pension assets were $531,300, projected benefit obligations were $535,800, and the net pension liability was $4,500

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2K views1 page

Basic Pension Worksheet

The pension plan had assets of $490,000 and projected benefit obligations of $490,000 on January 1, 2012. During the year, the plan had service costs of $40,000, contributions of $25,000, actual returns of $49,700, and benefits paid of $33,400. The pension expense for 2012 is $29,500, as shown by the journal entry debiting pension expense for $29,500 and crediting the pension plan assets for $25,000 and the projected benefit obligation for $4,500. At year-end, pension assets were $531,300, projected benefit obligations were $535,800, and the net pension liability was $4,500

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Ibnu Gaming
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E20-4

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(Basic Pension Worksheet)
The following facts apply to the pension plan of Boudreau Inc. for the year 2012.
Plan assets, January 1, 2012 $490,000
Projected benefit obligation, January 1, 2012 490,000
Settlement rate 8%
Service cost 40,000
Contributions (funding) 25,000
Actual and expected return on plan assets 49,700
Benefits paid to retirees 33,400
Using the preceding data, compute pension expense for the year 2012. As part of your solution,
prepare a pension worksheet that shows the journal entry for pension expense for 2012 and the
year-end balances in the related pension accounts.
Boudreau Inc.
Pension Worksheet-2012
General Memo Record
Journal
Entries
Annual Projected
Pension Pension Benefit
Items Expense Cash Asset/Liability Obligation Plan Assets
Balance, January
490,000 Cr. 490,000 Dr.
1, 2012
Service cost 40,000 Dr. 40,000 Cr.
Interest cost 39,200 Dr. 39,200 Cr.
Actual return 49,700 Cr. 49,700 Dr.
Contributions 25,000 Cr. 25,000 Dr.
Benefits 33,400 Dr. 33,400 Cr.
Journal entry,
29,500 Dr. 25,000 Cr. 4,500 Cr.
December 31
Balance, 4,500 Cr. 535,800 Cr. 531,300 Dr.
December 31,
2012

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