15. Glass Attack, Ltd. provided you with the following information regarding its defined benefit pension plan. Glass Attack Ltd. follows IFRS and it expects a return on plan assets equal to its settlement rate. (Click the icon to view the information.) Read the requirements Requirement a. Prepare the separate "conceptual" journal entries for the relevant information above. (Abbreviations used: OCI = Other Comprehensive Income; PVDBO = Present Value of the Defined-Benefit Obligation. 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 Pension Expense PVDBO Current Year 122,000 122,000 Prepare the required conceptual journal entry, if any, for the past service costs awarded during the current year. Exclude any amortization of prior service costs. Account Pension Expense PVDBO Current Year 20,000 20,000 Prepare the required conceptual journal entry, if any, for amortization of prior service costs. Current Year Account No Entry Required Prepare the required conceptual journal entry, if any, for interest on the present value of the defined-benefit obligation (PVDBO). Current Year Account (1) Pension Expense (2) PVDBO (3) (4) Prepare the required conceptual journal entry, if any, for the expected return on plan assets. Current Year Account (5) Pension (6) Pension Plan Assets Expense Prepare the required conceptual journal entry, if any, for the unexpected return on plan assets. Current Year Gains / Lossel Account (9) Oct - Arturial (10) Pension Plan (11) (12) Prepare the required conceptual journal entry, if any, to adjust the PVDBO for changes in actuarial assumptions, Current Year Account (13) PUDBO (14) OC1 - Acturial (15) ||(16) Gains Losses 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 Required (18) (20) Prepare the required conceptual journal entry, if any, to record contributions made to the plan during the year. Current Year Account |(21) Pension (22) Cash Plan Assets (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) PVDBO (26) Pension (27) (28) Plan Ass 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. (Abbreviations used: PVDBO = Present Value of the Defined Benefit Obligation. 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 PUDRO (31) Expected Return an Plan As (32) Prior Services (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. (Abbreviations used: PVDBO = Present Value of the Defined-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.) Amount Review the conceptual journal entries from Requirement a Change in Benefit Obligation: (35) Beginning Balance of PVDBO (36) Service cost (37) Past Service Cost (38) Interest on PUDEO (39) Chance Actavia Assunta |(40) Benefits Paid during the year Ending Balance of PVDBO 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 journal entries from Requirement a Change in Plan Assets: Amount (41) Beginning Balance of Plan Assets L (42) Dected Return of Plan Asscts IL (43)Unexpected hcturn of Plan ASSCAST (44) Employer Contributions (45) Benefits paid during the (46) Ending Balance of Plan Assets Indicate the funded status of the plan. The ending funded status of the plan is a $ (47) net liability or underfunded The beginning funded status of the plan is a $ (48) net asset or over funded Requirement d. Prepare the journal entry to record the current year's pension cost. (Abbreviations used: OCI = Other Comprehensive Income. Record debits first, then credits. Exclude explanations from any journal entries.) Review the conceptual journal entries from Requirement a. Current Year Account (49) Pension Expense (50) OC - Actorial Cicanas (51) Cash (52) Net Dension Liabil (53) 1: More Info a. Beginning plan assets at fair value (market-related value). $580,000 b. Beginning projected benefit obligation (PVDBO), $510,000 C. Service cost for the year, $122,000 d. Settlement rate, 8% e. Expected return on plan assets, 8% f. Actual return on plan assets, $24,500 loss g. Contributions for the year, $45,400 h. Benefit payments for the year, $94,100 i. Beginning Accumulated Other Comprehensive Income, $39,000 (due to unamortized net actuarial gains) j. Past 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, $9,000 1. Decrease in the ending projected benefit obligation due to changes in actuarial assumptions (i.e., actuarial gain), $10,000 m. Average remaining service life of the employee base, 10 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