My first Magazine AC 501 All Assignments | Page 14

9%
Annual pension service cost
58,000
Contributions (funding)
55,000
Actual return on plan assets
52,280
Benefits paid to retirees
40,000
Prior service cost amortization for 2008
17,000
Instructions: For 2008, prepare a pension worksheet for Doreen Corp.
that shows the journal entry for pension expense and the year-end
balance in the related pension accounts.
E17-2: (Lessee Computations and Entries; Capital Lease with
Guaranteed Residual Value) Delaney Company leases an automobile
with fair value of $ 8,725 from John Simon Motors, Inc., on the
following terms.
Noncancelable term of 50, months.
Rental of $ 200 per month (at end of each month; present value at 1%
per month is $ 7,840).