上财CGA班中级财务会计FA2PS1课件ch20l7.pptVIP

Accounting for Pensions and Other Postretirement Benefits Chapter 20 A Pension Plan is an arrangement whereby an employer provides benefits (payments) to employees after they retire for services they provided while they were working. Copyright Using a Pension Work Sheet P20-2 Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2008, with the following beginning balances: plan assets $200,000; projected benefit obligation $200,000. Other data are as follows. LO 8 Explain the corridor approach to amortizing unrecognized gains and losses. Using a Pension Work Sheet P20-2 Pension Work Sheet for 2008 LO 8 Explain the corridor approach to amortizing unrecognized gains and losses. ($0) * Expected Return on Plan Assets $200,000 x 10% = $20,000 * Using a Pension Work Sheet P20-2 Pension Journal Entry for 2008 Cash 16,000 Pension expense 16,000 Dec. 31 LO 8 Explain the corridor approach to amortizing unrecognized gains and losses. Using a Pension Work Sheet P20-2 Pension Work Sheet for 2009 LO 8 Explain the corridor approach to amortizing unrecognized gains and losses. ($49,700) net liability * Actual return = Expected Return * Using a Pension Work Sheet P20-2 Pension Journal Entry for 2009 Prepaid/Accrued Costs 49,700 Pension expense 89,700 Dec. 31 Cash 40,000 LO 8 Explain the corridor approach to amortizing unrecognized gains and losses. Using a Pension Work Sheet P20-2 Pension Work Sheet for 2010 LO 8 Explain the corridor approach to amortizing unrecognized gains and losses. ($85,130) net liability * Plug * Using a Pension Work Sheet P20-2 Pension Journal Entry for 2010 Prepaid/Accrued Costs 35,430 Pension expense 83,430 Dec. 31 Cash 48,000 LO 8 Explain the corridor approach to amortizing unrecognized gains and losses. Using a Pension Work Sheet LO 8 Explain the corridor approach to amortizing unrecognized gains and losses. P20-2 (Variation) Would there be any amortization of the gain/loss for 2011? The am