Glesen Company sponsors a defined benefit pension plan for its employees

Glesen Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2008 and 2009.

AND SO ON

Instructions
(a) Prepare a pension worksheet presenting both years 2008 and 2009 and accompanying computations including the computation of the minimum liability (2008 and 2009) and amortization of the unrecognized loss (2009) using the corridor approach.
(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
(c) At December 31, 2009, prepare a schedule reconciling the funded status of the pension plan with the pension amounts reported in the financial statements.

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Mantle Company sponsors a defined benefit pension plan

P20-4 (Pension Expense, Minimum Liability, Journal Entries for 2 Years) Mantle Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2007 and 2008.

Plan assets (fair value), December 31 - 2007: $380,000 2008: $465,000
Projected benefit obligation, January 1 - 2007: $600,000 2008: $700,000
Prepaid/(accrued) pension cost balance, January 1 - 2007: (40,000) 2008: $?
Unrecognized prior service cost, January 1 - 2007: $250,000 2008: $240,000
Service cost - 2007: $60,000 2008: $90,000
Actual and expected return on plan assets – 2007: $24,000 2008: $30,000
Amortization of prior service cost - 2007: $10,000 2008: $12,000
Contributions (funding) - 2007: $110,000 2008: $120,000
Accumulated benefit obligation, December 31 - 2007: $500,000 2008: $550,000
Additional pension liability balance, January 1 - 2007: $50,000 2008: $?
Interest/settlement rate - 2007: 9% 2008: 9%

Instructions
(a) Compute pension expense for 2007 and 2008.
(b) Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.
(c) Compute the minimum liability for 2007 and 2008.
(d) Prepare the journal entries to record the minimum liability for both years.

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Gordon Company sponsors a defined benefit pension plan

(Pension Expense, Journal Entries for 2 Years) Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011.

2010 2011
Plan assets (fair value), December 31 $699,000 $849,000
Projected benefit obligation, January 1 700,000 800,000
Pension asset/Liability, January 1 140,000 Cr. ?
Prior service cost, January 1 250,000 240,000
Service cost 60,000 90,000
Actual and expected return on plan assets 24,000 30,000
Amortization of prior service cost 10,000 12,000 Contributions (funding) 115,000 120,000
Accumulated benefit obligation, December 31 500,000 550,000
Interest/settlement rate 9% 9%

(a) Compute pension expense for 2010 and 2011.
(b) Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.

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