Problem - Basic Pension Worksheet

The following defined pension data of Doreen Corp. apply to the year 2008.

Projected benefit obligation, 1/1/08 (before amendment) $560,000

Plan assets, 1/1/08 546,200

Prepaid/accrued pension cost (credit) 13,800

On January 1, 2008, Doreen Corp., through plan amendment,

grants prior service benefits having a present value of 100,000

Settlement rate 9%

Service cost 58,000

Contributions (funding) 55,000

Actual (expected) return on plan assets 52,280

Benefits paid to retirees 40,000

Prior service cost amortization for 2008 17,000

Instructions - For 2008, prepare a pension worksheet for Doreen Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.