Ch 20.2 (Using a Pension Worksheet)

Question 1

Pension expense components (3 out of 5)

Answer 1

1. Service cost
2. Interest on liability
3. Actual return on plan assets

Question 2

projected benefit obligation v plan assets (fair value)

Answer 2

If the projected benefit obligation is greater than the plan assets, a pension liability occurs and vice versa)

Question 3

Pension worksheet

Answer 3

The ending balance in the Pension Asset/Liability column should equal the net balance in the memo record.