quiz 3 name van persie corp 562037

Quiz 3 ??????Name ___________________________________________________________

VanPersieCorp. sponsors a defined benefit pension plan for its employees.The following balancesrelated to the plan exist onDecember 31, 2009.

Plan assets (marketvalue)???$450,000

Projected benefit obligation???600,000

Pension asset/liability????150,000 Cr.

VanPersieamends the pension plan, effective 1/1/2010, and the actuary informs VanPersiethat the Prior Service Cost associated with the amendment equals $90,000.

As a result of the operation of the plan during 2010, the actuary provided the following additional dataonDecember 31,2010.

Service cost for2010????$ 75,000

Actual return on plan assets in2010?? 45,000

Amortization of prior service cost?? 20,000

Contributions in2010???115,000

Benefits paid retirees in2010?? 70,000

Settlement rate?????7%

Expected return rate?????8%


(a)Compute pension expense forVanPersieCorp. for the year2010by preparingthe attachedpension worksheet.

(b)Prepare the journal entry for pension expense.

General Journal Entries

Memo Record

Other Comprehensive Income


Pension Expense


Prior Service Cost


Pension Asset/Liability


Plan Assets

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