Journal Entries and Minimum Pension Liability The following balances relate to the pension plan of

/in /by

Journal Entries and Minimum Pension Liability

The following balances relate to the pension plan of Rienstem Transportation Co. at

December 31, 2008 and 2009:

 

(in thousands)

 

Dec 31, 2008

Dec 31, 2009

PBO

$3,075

$3,160

ABO

2,804

2,907

Fair value of the pension fund

2,754

2,532

Market-related value of the pension fund

2,550

2,750

Unrecognized prior service cost

240

215

Prepaid/(accrued) pension cost

15

(30)

Unrecognized net pension loss

96

383

Instructions:

1. Determine whether a minimum pension liability adjustment is required at December 31, 2008 and 2009.

2. Prepare journal entries at December 31, 2008 and 2009, to record any additional liability.

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