Simple Pension Work Sheet
Refer to Practice 17-8. Enter all of the pension information, including the beginning balances, in a pension work sheet. Use the pension work sheet to display the computation of pension expense for the year as well as the ending balances for all pension-related items.
Simple Computation of the Net Pension Asset or Liability
On January 1 of Year 1, the company had a projected benefit obligation (PBO) of $10,000 and a pension fund with a fair value of $9,200. There was no unrecognized prior service cost, nor were there deferred pension gains or losses. The following information relates to the pension plan during the yea
Actual return on the pension fund
Benefits paid to retirees
Contribution to the pension fund
Discount rate for PBO
Expected return on pension fund
Compute (1) the pension-related amount that should be reported on the company’s balance sheet on January 1 of Year 1, (2) the PBO as of December 31, and (3) the fair value of the pension fund as of December 31.