Service cost $500,000
Actual return on plan assets 240,000
Annual contribution to the plan 900,000
Benefits paid to retirees 60,000
Settlement rate 10%
The accumulated, vested and projected benefit obligation at December 31, 2012, amounted to $2,500,000, $3,250,000, and $3,500,000 .
Instructions
(a) Using the above information for Kings Corporation, complete the pension work sheet for 2013. Indicate (credit) entries by parentheses. Calculated amounts should be supported.
(b) Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2013.
20-38
Test Bank for Intermediate Accounting, Fourteenth Edition
20-37
Accounting for Pensions and Postretirement Benefits
Kings Corporation
Pension Work Sheet—2013
—————————————————————————————————————————————————————————— General Journal Entries Memo Entries
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Journal entry
for 2013
Balance, Dec. 31, 2013
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