Task: (Basic Pension Work Sheet) The following defined pension data of Doreen Corp. apply to the year 2005.
Projected benefit obligation, 1/1/05 (before amendment) $560,000
Plan assets, 1/1/05 546,200
Prepaid/accrued pension cost (credit) 13,800
On January 1, 2005, Doreen Corp., through plan amendment,
grants prior service benefits having a present value of 100,000
Settlement rate 9%
Annual pension service cost 58,000
Contributions (funding) 55,000
Actual return on plan assets 52,280
Benefits paid to retirees 40,000
Prior service cost amortization for 2005 17,000
Instructions:
For 2005, prepare a pension work sheet for Doreen Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.