E20-7(Bsic pension worksheet) The following defined pension data of Rydell Corp. apply to the year 2014.

Projected benefit obligation, 1/1/14 (before amendment) 560,000

Plan assets, 1/1/14 546,200

Pension liability 13,800

On January 1, 2014, Rydell Corp., through plan amendment, grants prior service benefits having a present value of 120,000

Settlement rate 9%

Service cost 58,000

Contributions (funding) 65,000

Actual (expected) return on plan assets 52,280

Benefits paid to retirees 40,000

Prior service cost amortization for 2014 17,000

Instruction:

For 2014, prepare a pension worksheet for Rydell Corp that shows the journal entry for pension expense and the year end balance in teh related pension accounts.

Pension Worksheet2014
	General Journal Entries				Memo Record
Items	Annual Pension Expense	Cash	OCI - Prior Service Cost	Pension Asset/ Liability	Projected Benefit Obligation	Plan Assets
Balance, December 31, 2013
(a) Prior service cost
Balance, January 1, 2014
(b) Service cost
(c) Interest cost
(d) Actual return
(e) Amortization of PSC
(f) Contributions
(g) Benefits
Journal entry for 2014
Accumulated OCI, December 31, 2013
Balance, December 31, 2014

Interest cost = $560,000 + $120,000 = $680,000 Settlement rate of 9% = $61,200.