20-14

Balance, January 1, 2005

(a) Service cost
(b) Interest cost
(c) Actual return
(d) Amortization of PSC
(e) Contributions
(f) Benefits
Journal entry
Balance, January 31, 2005

90,000 Dr.
80,000 Dr.
64,000 Cr.
10,000 Dr.
_______
116,000 Dr.

10,000 Cr.

105,000 Cr.
_______
105,000 Cr.

(b) $80,000 = $800,000 X 10%.

Reconciliation Schedule
Projected benefit obligation
Plan assets at fair value
Funded status
Unrecognized prior service cost
Prepaid/accrued pension cost

$(930,000)
769,000
(161,000)
140,000
$ (21,000)

11,000 Cr.
21,000 Cr.

800,000 Cr.
90,000 Cr.
80,000 Cr.

Memo Record
Plan
Assets

Unrecognized
Prior
Service Cost

640,000 Dr.

150,000 Dr.

64,000 Dr.

40,000 Dr.

105,000 Dr.
40,000 Cr.

_______
930,000 Cr.

_______
769,000 Dr.

10,000 Cr.

140,000 Dr.

EXERCISE 20-3 (15-25 minutes)

Rebekah Company
Pension Work Sheet2005
General Journal Entries
Annual
Prepaid/
Projected
Pension
Accrued
Benefit
Expense
Cash
Cost
Obligation