Question
ABC Corp. received the following information from its pension plan trustee concerning the operation of the...
ABC Corp. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2018:
January 1, 2018 December 31, 2018
Projected benefit obligation (PBO) $2,200,000
Market-related asset value 1,700,000
Accumulated Other Comprehensive Income (PSC) 890,000
Unrecognized net (gains) and losses -0- 400,000
Service Cost 125,000
Amortization of prior service cost 240,000
Contribution 610,000
Benefits 200,000
Actual Return on plan asset 100,000
Settlement Rate & Expected rate of return 8%
Required:
a. Prepare the pension worksheet.
b. Prepare the journal entry
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