(Pension Worksheet) Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2012, the following balances relate to this plan.
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Plan assets
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$480,000
|
|
Projected benefit obligation
|
600,000
|
|
Pension asset/liability
|
120,000
|
|
Accumulated OCI (PSC)
|
100,000
|
As a result of the operation of the plan during 2012, the following additional data are provided by the actuary.
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Service cost for 2012
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$90,000
|
|
Settlement rate, 9% Actual return on plan assets in 2012
|
55,000
|
|
Amortization of prior service cost
|
19,000
|
|
Expected return on plan assets
|
52,000
|
|
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions
|
76,000
|
|
Contributions in 2012
|
99,000
|
|
Benefits paid retirees in 2012
|
85,000
|
Instructions
(a) Using the data above, compute pension expense for Webb Corp. for the year 2012 by preparing a pension worksheet.
(b) Prepare the journal entry for pension expense for 2012.