E20-4
The following facts apply to the pension plan of Boudreau Inc. for the year
2014.
|
Plan
assets, January 1, 2014
|
|
$490,000
|
|
|
Projected
benefit obligation, January 1, 2014
|
|
490,000
|
|
|
Settlement
rate
|
|
8
|
%
|
|
Service
cost
|
|
40,000
|
|
|
Contributions
(funding)
|
|
25,000
|
|
|
Actual
and expected return on plan assets
|
|
49,700
|
|
|
Benefits
paid to retirees
|
|
33,400
|
|
Using
the preceding data, compute pension expense for the year 2014. As part of your
solution, prepare a pension worksheet that shows the journal entry for pension
expense for 2014 and the year-end balances in the related pension accounts.
|
BOUDREAU INC.
Pension Worksheet—2014 |
|||||||||||||||
|
|
|
General
Journal Entries
|
|
Memo
Record
|
|||||||||||
|
Items
|
|
Annual
Pension
Expense |
|
Cash
|
|
Pension
Asset/
Liability |
|
Projected
Benefit
Obligation |
|
Plan
Assets |
|||||
|
Balance,
January 1, 2014
|
|
||||||||||||||
|
Service
cost
|
|
||||||||||||||
|
Interest
cost
|
|||||||||||||||
|
Actual
return
|
|||||||||||||||
|
Contributions
|
|||||||||||||||
|
Benefits
|
|||||||||||||||
|
Journal
entry, December 31
|
|||||||||||||||
|
Balance,
December 31, 2014
|
|||||||||||||||
TUTORIAL PREVIEW
BOUDREAU INC.
Pension Worksheet—2014
| |||||
General Journal Entries
|
Memo Record
| ||||
Items
|
Annual
Pension
Expense
|
Cash
|
Pension
Asset /
Liability
|
Projected
Benefit
Obligation
|
Plan
Assets
|
Balance, January 1, 2014
|
490,000 Cr.
|
490,000 Dr.
| |||
File name: E20-4 Boudreau Inc.docx File type: .docx PRICE: $6
