The following defined pension data of Rydell Corp. apply to the year 2012.

Projected benefit obligation, 1/1/12 (before amendment) 562,800

Plan assets, 1/1/12 541,100

Pension liability 21,700

On January 1, 2012, Rydell Corp., through plan amendment,

grants prior service benefits having a present value of 123,700

Settlement rate 10 %

Service cost 59,800

Contributions (funding) 72,200

Actual (expected) return on plan assets 52,800

Benefits paid to retirees 41,400

Prior service cost amortization for 2012 18,800

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.

Solution:

Solution:-

Work Sheet for Journal Entry:-

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