Question - Basic Pension Worksheet
The following defined pension data of Eagle Homes Corporation apply to the year 2014.
Projected benefit obligation, January 1, 2014 (before amendment) $1,255,000
Plan assets, January 1, 2014 1,195,600
Pension liability, January 1, 2014 59,400
On January 1, 2014, Eagle Home Corp., through plan amendment, grants prior service benefits having a present value of 200,000
Settlement rate 6%
Service cost 69,000
Contributions (funding) 85,000
Actual and expected return on plan assets 43,610
Benefits paid to retirees 52,000
Prior service cost amortization for 2014 25,000
Instructions - For 2014, prepare a pension worksheet for Eagle Homes that shows the journal entry for pension expense and the year-end balances in the related pension accounts.