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Angel Investigations Inc, adopts acceptable accounting standards (FAS 158) for its defined benefit plan on 1/1/10. The initial balances in plan assets and projected benefit
Angel Investigations Inc, adopts acceptable accounting standards (FAS 158) for its defined benefit plan on 1/1/10. The initial balances in plan assets and projected benefit obligation, as well as other data relating to the subsequent 2 years of the plan operations are as follows: Plan Assels (beginning balance 1/1/10) S 100,000 PEO (beginning balance 1/1/10) $ 75000 2010 2011 Annual Service Costs $ 20000 25000 Settlement Rate 10% 10% Expected Rate of Return 10% 10% Actual Return on Plan Assels $ 18.000 30,000 Annual Funding Contribution $ 17.000 $ 50,000 Benefits Paid 15000 % 18,000 PEO End Balance at 12/31/10 (due to change in actuarial assumptions) % 134,000 Amort period for Change in Actuarial Assumption and corrider smoothing (in years) 10 PSG (plan Amended 1/1/11) $ 140,000 Amount of PSC amortized during 2011 & 20,000 1) Prepare a pension worksheet showing all pension activities and balances for 2010 and 2011, Provide all journal entries for the pension worksheet, 2y Prepare the formal journal enfries (from the worksheet) to reflect all pension plan transactions and events on the company's financial statements for 2010 and 2011
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