Using the information in E20-13 about Linda Berstler Company€™s defined benefit pension plan, prepare a 2010 pension worksheet with supplementary schedules of computations. Prepare the journal entries at December 31, 2010, to record pension expense. Also, prepare a schedule reconciling the plan€™s funded status with the pension amounts reported in the statement of financial position.
In E20-13 Linda Berstler Company sponsors a defined benefit pension plan. The corporation€™s actuary provides the following information about the plan.
The average remaining service life per employee is 20 years. The average time to vesting past service costs is 10 years.

Instructions
(a) Compute the actual return on the plan assets in 2010.
(b) Compute the amount of the unrecognized net gain or loss as of December 31, 2010. (Assume the January 1, 2010, balance was zero.)
(c) Compute the amount of unrecognized net gain or loss amortization for 2010 (corridor approach).
(d) Compute the amount of past service cost amortization for 2010.
(e) Compute pension expense for 2010.
(f) Prepare a schedule reconciling the plan€™s funded status with the amounts reported in the December 31, 2010, statement of financialposition.

Transcribed Image Text:

January 1 2010 £1,500 2,800 1,700 December 31 2010 £1,900 3,645 2,620 10% Vested benefit obligation Defined benefit obligation Plan assets (fair value Discount rate and expected rate of return Pension asset/liability Unrecognized past service cost Service cost for the year 2010 Contributions (funding in 2010) Benefits paid in 2010 1,100 400 800 200