6 8 9 10 11 # Populate the Worksheet for each item as appropriate 1 This is the start of a new calendar year for this unnamed company The company's pension plan begins the year with a. 300,000 in Plan Asset b. 350,000 in Plan Obligations c after you record these two items record the net Pension Asset or liability 2 At the very start of the year, the company changes the pension plan for ALL its retirees and exisitng workers. As a result of this change the Company must recognize a Prior Service Cost of 50,000 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 3. The current period expense or current year Service Cost is estimated by the actuary to be 45,000 4 The actuary uses a settlement rate of 4%. Please use it to estimate the interest cost on Pension Obligations for this year Change 5 The Pension Trustet informs the company at the end of the year that the actual return on plan assets was NEGATIVE 5X due to the Covld-19 crisis SUMMARY This space reserved for the summary accounting entry. You may not use all the debits and credits shown. And You may need an additional debit or credit 6 The company informs its outside auditor, KPMG, that it B 6 The company informs its outside auditor, KPMG, that it has decided to use an Estimated Rate of Return for pension accounting purposes of 4%, a reduced rate from historical levels because of the government intervention in the capital markets. This rate is used to estimate and record an Esimated return. 7 The company makes a contribution of 135,000 to the pension using cash 8 The Pension Trustee makes total pension payments to retirees of $90000 9 The outside auditor, KMPG, informs the company that it must amortize 20,000 of the prior service cost due to the plan change into the current period's Income Statement as an expense 10 On the last day of the fiscal year the actuary informs the company that It has changed its actuarial assumptions. At one time loss of $60,000 is estimated from these assumption changes. This will result in the accrual of Income Statement losses in each of the next three years, starting next fiscal year. 11 Sum up and complete the worksheet and use it to present the accounting journal entries for this year's pension accounting Use the box that has been blocked off for this. 12 A catastrophe strikes the retirees. A number of retirees die earlier than their life expectancy due to Covid-19. The amount of unpaid Pension obligations associaed with them is $ 15,000. Upon their death these obligations become $0 and there are no beneficiaries' rights or inheritance. The Company learns of this special event on the last day of the fiscal year. COVER SHEET Pension Worksheet Pension Fill in the Blank 12 A catastrophe strikes the retirees. A number of retirees die earlier than their life expectancy due to Covid-19. The amount of unpaid Pension obligations associaed with them is $ 15,000. Upon their death these obligations become $0 and there are no beneficiaries' rights or inheritance. The Company learns of this special event on the last day of the fiscal year. 59 60 61 62 63 64 65 66 67 ENTRY 68 69 70 STATEMENT 71 72 73 74 75 COMPLETE THE ENTRIES FOR THE PENSION EXPENSE AND PENSION OBLIGATION FOR THE YEAR. At the end of the year the pension plan is (Overfunded or Underfunded or Fullly Funded The Company's "Books and Records GENERAL JOURNAL ENTRIES MEMO RECORD for SEPARATE PENSION FUND ACT The Employer's Financial Statements The Pension Plan managed under a Pension Trustee Plan Fund Uabilities Use this column to identify the activity that your entries in the worksheet are meant to cover. INCOME STATEMENT Annual Pension Expense BALANCE SHEET Pension Asset Cash Activity i Debit/ DEBIT/ and AOC i Dability (Credit) Balances (Credit) Projected Pension Obligation Plan Assets ( credit 01 0 ... ... ... Change Change ... ... Debit Debit Debit SUMMARY This space reserved for the summary accounting entry. You may not use all the debits and credits shown. And you may need an additional debit or credit Credit Credit Credit 6 8 9 10 11 # Populate the Worksheet for each item as appropriate 1 This is the start of a new calendar year for this unnamed company The company's pension plan begins the year with a. 300,000 in Plan Asset b. 350,000 in Plan Obligations c after you record these two items record the net Pension Asset or liability 2 At the very start of the year, the company changes the pension plan for ALL its retirees and exisitng workers. As a result of this change the Company must recognize a Prior Service Cost of 50,000 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 3. The current period expense or current year Service Cost is estimated by the actuary to be 45,000 4 The actuary uses a settlement rate of 4%. Please use it to estimate the interest cost on Pension Obligations for this year Change 5 The Pension Trustet informs the company at the end of the year that the actual return on plan assets was NEGATIVE 5X due to the Covld-19 crisis SUMMARY This space reserved for the summary accounting entry. You may not use all the debits and credits shown. And You may need an additional debit or credit 6 The company informs its outside auditor, KPMG, that it B 6 The company informs its outside auditor, KPMG, that it has decided to use an Estimated Rate of Return for pension accounting purposes of 4%, a reduced rate from historical levels because of the government intervention in the capital markets. This rate is used to estimate and record an Esimated return. 7 The company makes a contribution of 135,000 to the pension using cash 8 The Pension Trustee makes total pension payments to retirees of $90000 9 The outside auditor, KMPG, informs the company that it must amortize 20,000 of the prior service cost due to the plan change into the current period's Income Statement as an expense 10 On the last day of the fiscal year the actuary informs the company that It has changed its actuarial assumptions. At one time loss of $60,000 is estimated from these assumption changes. This will result in the accrual of Income Statement losses in each of the next three years, starting next fiscal year. 11 Sum up and complete the worksheet and use it to present the accounting journal entries for this year's pension accounting Use the box that has been blocked off for this. 12 A catastrophe strikes the retirees. A number of retirees die earlier than their life expectancy due to Covid-19. The amount of unpaid Pension obligations associaed with them is $ 15,000. Upon their death these obligations become $0 and there are no beneficiaries' rights or inheritance. The Company learns of this special event on the last day of the fiscal year. COVER SHEET Pension Worksheet Pension Fill in the Blank 12 A catastrophe strikes the retirees. A number of retirees die earlier than their life expectancy due to Covid-19. The amount of unpaid Pension obligations associaed with them is $ 15,000. Upon their death these obligations become $0 and there are no beneficiaries' rights or inheritance. The Company learns of this special event on the last day of the fiscal year. 59 60 61 62 63 64 65 66 67 ENTRY 68 69 70 STATEMENT 71 72 73 74 75 COMPLETE THE ENTRIES FOR THE PENSION EXPENSE AND PENSION OBLIGATION FOR THE YEAR. At the end of the year the pension plan is (Overfunded or Underfunded or Fullly Funded The Company's "Books and Records GENERAL JOURNAL ENTRIES MEMO RECORD for SEPARATE PENSION FUND ACT The Employer's Financial Statements The Pension Plan managed under a Pension Trustee Plan Fund Uabilities Use this column to identify the activity that your entries in the worksheet are meant to cover. INCOME STATEMENT Annual Pension Expense BALANCE SHEET Pension Asset Cash Activity i Debit/ DEBIT/ and AOC i Dability (Credit) Balances (Credit) Projected Pension Obligation Plan Assets ( credit 01 0 ... ... ... Change Change ... ... Debit Debit Debit SUMMARY This space reserved for the summary accounting entry. You may not use all the debits and credits shown. And you may need an additional debit or credit Credit Credit Credit