Worksheet on Glesen Company
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
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