Preparing a Pension Work Sheet
The following data relate to the defined benefit pension plan of Haan Company:
Balances at January 1, 2008:
Â
PBOÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
$3,500
Unrecognized prior service cost                                                 Â
$ 150
Fair value of pension assets                                                    Â
$3,000
ABOÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
$2,800
Expected return on plan assets                                                  Â
7%
Settlement discount rate                                                      Â
10%
Activity for 2008:
Service cost                                                               Â
$ 400
Benefit payments to retirees                                                   Â
170
Contributions to pension fund                                                  Â
230
Actual return on plan assets                                                    Â
130
Prior service cost amortization                                                 Â
40
Instructions:Â Prepare a pension work sheet for Haan Company for 2008.