Company A\'s pension plan had the following balances on January 1, 2012 Balances
ID: 2517253 • Letter: C
Question
Company A's pension plan had the following balances on January 1, 2012
Balances, Jan. 1, 2010
plan assets -$120,000
pension assets/liabilities-($22,000)
projected benefit obligation-($142,000)
accumulated OCI
(PSC)- $42,000
(G/L)- $18,000
In 2012, Company A adjusted the actuarial assumptions of the plan, which increase the projected benefit obligation by $44,000. Service costs, and additional information regardingg the plan are summarized below.
Pension Plan
service cost- 28,400
amortization of prior service cost-0
amended prior service costs-(80,000)
actual return on plan assets-40,000
contributions-82,000
benefits paid-64,200
Company A's expected return on plan assets is 10%, while their interest and settlement rate is 8%. The average remaining service life of Comapny A's employees was 8 years.
Instructions
1. Prepare a schedule to calculate amortization of the gain, or loss on other omprehensive income, if any using the corridor method.
2. Prepare a pension plan worksheet for 2012.
3. Prepare the journal entry to record pension plan expense in 2012.
***Please show all work and calculations for everything***
Thanks :)
Explanation / Answer
Requirement 1
Amortisation of loss on OCI using Corridor method
Requirement 2
Requirement 3
Corridor Amortization $475 ($18,000-$142,000*10%)/8Related Questions
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