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

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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