Exercise 20-7 The following defined pension data of Rydell Corp. apply to the year 2012. 2023 Business Finance

2023 Exercise 20 7 The following defined pension data of Rydell Corp apply to the

Exercise 20-7
The following defined pension data of Rydell Corp. apply to the year 2012.

Projected benefit obligation, 1/1/12 (before amendment) $561,800
Plan assets, 1/1/12 540,800
Pension liability 21,000
On January 1, 2012, Rydell Corp., through plan amendment,
grants prior service benefits having a present value of 124,000
Settlement rate 10 %
Service cost 60,000
Contributions (funding) 73,100
Actual (expected) return on plan assets 62,000
Benefits paid to retirees 45,700
Prior service cost amortization for 2012 17,500

For 2012, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

Pension Worksheet—2012

General Journal Entries

Memo Record

Annual Pension


Service Cost

Pension Asset/

Projected Benefit

Balance, Dec. 31, 2011

Prior service cost

Balance, Jan. 1, 2012

Service cost

Interest cost

Actual return

Amortization of PSC



Journal entry for 2012

Accumulated OCI, Dec. 31, 2011

Balance, Dec. 31, 2012

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