Can you assist me with this assignment?
The accountant for Jarvis Corporation has developed the following information for the company's defined-benefit pension plan for 2008.
* Service cost $500,000
* Actual return on plan assets 260,000
* Annual contribution to the plan 900,000
* Amortization of unrecognized prior service cost 105,000
* Benefits paid to retirees 60,000
* Settlement rate 10%
* Expected rate of return on plan assets 8%
The accumulated benefit obligation at December 31, 2008, amounted to $4,250,000.
Instructions:
a.) Using the above information for Jarvis Corporation, complete the pension work sheet for 2008. Indicate (credit) entries by parentheses. Calculated amounts should be supported.
b.) Prepare the journal entries to reflect the accounting for the company's pension plan for the year ending December 31, 2008.
| Jarvis Corporation |
| Pension Work Sheet - 2008 |
|
General Journal Entries |
Memo Entries |
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Annual |
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Prepaid/ |
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Projected |
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Unrecognized |
Unrecognized |
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Pension |
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(Accrued) |
Additional |
Pension |
Benefit |
Plan |
Prior Service |
Net (Gain) |
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Expense |
Cash |
Cost |
Liability |
Intangible |
Obligation |
Assets |
Cost |
or Loss |
| Bal. Dec. 31, 2007 |
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(375,000), |
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(3,750,000), |
2,750,000 |
625,000 |
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| Service cost |
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| Interest Cost |
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| Actual return |
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| Unexpected Gain/loss |
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| Amortization of PSC |
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| Contributions |
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| Benefits |
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| Min. Liability adjstmnt |
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| Journal entry for 2008 |
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| Balance, Dec. 31, 2008 |
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