(Pension Worksheet) The following data relate to the operation of Enyart Co.’s pension plan in 2012. The pension worksheet for 2011 is provided in P20-10.

For 2012, Enyart will use the same assumptions as 2011 for the settlement rate and the expected rate of return on plan assets.
Instructions

(a) Prepare a pension worksheet for 2012 and accompanying computations and amortization of the loss, if any, in 2012 using the corridor approach.

(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31.

(c) Indicate the pension amounts reported in the financial statements.

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Service cost Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Average service life of all employees $59,000 32,000 24,000 41,000 27,000 20 years