Question - Basic Pension Worksheet
The following facts apply to the pension plan of Trudy Borke Inc. for the year 2008.
Plan assets, January 1, 2008 $490,000
Projected benefit obligation, January 1, 2008 490,000
Settlement rate 8.5%
Service cost 40,000
Contributions (funding) 30,000
Actual and expected return on plan assets 49,700
Benefits paid to retirees 33,400
Instructions - Using the preceding data, compute pension expense for the year 2008. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2008 and the year-end balances in the related pension accounts.