Plan assets $450,000 Projected benefit obligation 600,000 Pension asset/liability (Credit) 150,000 AOCI- Prior service cost...
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Accounting
Plan assets $450,000
Projected benefit obligation 600,000
Pension asset/liability (Credit) 150,000
AOCI- Prior service cost (Debit) 75,000
AOCI Gain/Loss (Debit) 65,000
As a result of the operation of the plan during 2022, the actuary provided the following additional data:
Service cost $ 75,000
Actual return on plan assets 45,000
Amortization of prior service cost 20,000
Contributions 115,000
Benefits paid retirees 70,000
Settlement rate 7%
Expected return rate 8%
Average remaining service life of active employees 10 years
Instructions
(A) Using the above information for Howard Corporation, prepare the pension work sheet for 2022. Calculated amounts should be supported.
(Hint: calculate the corridor, to balance the work sheet).
(b) Prepare the journal entry for pension expense.
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