Computing and Recording Additional Pension Liability The following balances relate to the defined…

Computing and Recording Additional Pension Liability

The following balances relate to the defined benefit pension plan of Cameron Industries:

 

Dec 31, 2008

Dec 31, 2009

Fair value of the pension fund                               

$149,000

$160,000

Market-related value of the pension fund

 

 

(5-year weighted average)                                

145,000

152,000

PBO                                                 

173,200

191,600

ABO                                                 

159,100

172,900

Prepaid/(accrued) pension cost                              

4,200

(1,950)

Unrecognized prior service cost                             

8,200

6,300

Unrecognized net pension loss                              

20,200

23,350

Instructions:

1. Determine the additional pension liability, if any, at December 31, 2008, and December 31, 2009.

2. Prepare journal entries for the additional pension liability adjustment, if any, at December 31, 2008, and December 31, 2009. Assume that the company had not previously recognized additional pension liability under FASB Statement No. 87.

 

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