Worksheet on Glesen Company

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  • Topic: Pension, Cash balance plan, January 1
  • Pages : 2 (266 words )
  • Download(s) : 35
  • Published : July 1, 2011
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Comprehensive 2 year worksheet on Glesen Company
The Glesen company sponsors a defined benefit pension plan for its employees. The following date relates to the operation of the plan for the years 2008 and 2009.

                                                                                 2008                       2009

Projected benefit obligation, January 1                     $650,000 Plan assets (fair value/market relatedvalue), Jan 1     410,000 Prepaid/accrued pension cost (credit), January 1          80,000 Additional pension liability, January 1                          12,300 Intangible asset-deferred pension cost, January 1        12,300 Unrecognized prior service cost, January 1                 160,000 Service cost                                                              40,000                 $ 59,000 Settlement rate                                                             10%                       10% Expected rate of return                                                  10%                       10% Actual return on plan assets                                        36,000                    61,000 Amortization of prior service cost                                 70,000                    55,000 Annual contributions                                                    72,000                    81,000 Benefits paid retirees                                                   31,500                    54,000 Increase in projected benefit obligation due to

  changes in actuarial assumption                                 87,000                      -0- Accumulated benefit obligatin at Dec 31                       721,000                   789,000 Average service life of all employees                                                           20 years Vested benefit obligation at Dec 31                                                             464,000

Question 1: Prepare a pension worksheet presenting both years...
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