14. Glass Act, Ltd. provided you with the following information regarding its defined-benefit pension plan. (Click the icon to view the information.) Read the requirements? Requirement a. Prepare the separate "conceptual" journal entries for the relevant information above. (Abbreviation used: OCI = Other Comprehensive Income. Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the table blank.) Begin by preparing the required conceptual journal entry, if any, for service costs for the current year. Account Current Year Pension Expense 130,000 Projected Benefit Obligation 130,000 Prepare the required conceptual journal entry, if any, for the prior service costs awarded during the current year. Exclude any amortization of prior service costs. Account OCI - Prior Service Costs Projected Benefit Obligation Current Year 20,000 20,000 Prepare the required conceptual journal entry, if any, for amortization of prior service costs. Account Pension Expense OCI - Prior Service Costs Current Year 8,000 8,000 Prepare the required conceptual journal entry, if any, for interest on the projected benefit obligation (PBO). Current Year Account (1) Pension Expense (2) Projected Benefit Obligation Prepare the required conceptual journal entry, if any, for the expected return on plan assets. Current Year Account (5) Pension Plan Assets (6) Rension Expense - Expected Retur Prepare the required conceptual journal entry, if any, for the unexpected return on plan assets, Current Year Account (9) OCT-Acturial Grain / Losses (10) Pension Plan Assets (11) (12) Prepare the required conceptual journal entry, if any, to adjust the PBO for changes in actuarial assumptions Account Current Year |(13) Proiected Bercfit Obligation |(14) OCI- Acturial Gains / Losse (15) (16) Prepare the required conceptual journal entry, if any, to amortize the net actuarial gains or losses under the corridor approach. Current Year Account (17) No entry Recquired (18) (19) (20) Prepare the required conceptual journal entry, if any, to record contributions made to the plan during the year. Current Year Account (21) pension Plan Assets (22) Cash (23) (24) Prepare the required conceptual journal entry, if any, to record any benefit payments made to retirees during the year. Current Year Account |(25) Prointed Benost Obligation (26) Pension plan Assets (27) (28) Requirement b. Compute the pension cost for the year. Select the labels and enter the amounts for all items that are included in the pension cost for the year. (Use parentheses or a minus sign for items that reduce pension cost. If a box is not used in the table leave the box empty: do not select a label or enter a zero.) Review the conceptual journal entries from Requirement a Components of Pension Cost: Amount (29) Service Cost (30) Interest on PBO (31) Expected Return on Dan Assets (32)Amortization of Prier Service (33) (34) Total Pension Cost Requirement c. Determine the ending balances of the plan assets and the projected benefit obligation and indicate the funded status of the plan. Begin by selecting the labels and entering the amounts to determine the ending balance of the projected benefit obligation. (Use parentheses or a minus sign for credit balances and for items that increase the benefit obligation. If a box is not used in the table leave the box empty, do not select a label or enter a zero.) Review the conceptual journal entries from Requirement a Change in Benefit Obligation: Amount |(35) Beginning Balance of PRO (36) Service Cost (37) Prior service cost (38) Illterest on PRO (39) Change in Acturial Assumtion (erais (40) Benefits paid During deurek Ending Balance of PBO Select the labels and enter the amounts to determine the balance of the plan assets at the end of the year (Use parentheses or a minus sign for items that reduce plan assets. If a box is not used in the table leave the box empty, do not select a label or enter a zero.) Review the conceptual joumal entries from Requirement a Amount Change in Plan Assets: |(41) Beaining Ralance of Plan Assets (42) Expected Retua salan Assets (43)Unexpected Return on Plan Assets (44) Emplover Calvi wions Made during te (45) Benefits Raid Dredhe car (46) Ending Balance of Plan Assets Indicate the funded status of the plan. The ending funded status of the plan is a $ L (47) net liability or underfunded (48) net asset ov_ over funded The beginning funded status of the plan is a $ L Requirement d. Prepare the journal entry to record the current year's pension cost. (Record debits first, then credits. Exclude explanations from any journal entries.) Review the conceptual journal entries from Requirement a. Account Current Year (49) Pension Expense (50) OCI -Prior Service costs |(51) OCI - Acturial Gains/losser (52) Net Pension Liabit (53) Cash 1: More Info a. Beginning plan assets at fair value (market-related value), $650,000 b. Beginning projected benefit obligation (PBO), $510,000 C. Service cost for the year, $130,000 d. Settlement rate, 8% e. Expected return on plan assets, 4% f. Actual return on plan assets, $26,700 loss g. Contributions for the year, $40,900 h. Benefit payments for the year, $91,340 i. Beginning Accumulated Other Comprehensive Income, $43,000 (due to unamortized net actuarial gains) j. Prior service costs awarded during the year (not effective as of the beginning of the year) for vested employees, $20,000 k. Amortization of prior service costs, $8,000 1. Decrease in the ending projected benefit obligation due to changes in actuarial assumptions (i.e., actuarial gain), $7,500 m. Average remaining service life of the employee base, 5 years 2: Requirements a. Prepare the separate "conceptual journal entries for the relevant information above. b. Compute the pension cost for the year. c. Determine the ending balances of the plan assets and the projected benefit obligation and indicate the funded status of the plan. d. Prepare the journal entry to record the current year's pension cost