ALL CALCULATIONS ARE FOR THE YEAR ENDING 2017.

Interest (Cost) Rate 3%

Expected rate of return on plan assets 4%

Actual rate of return on plan assets 5%

COMPONENTS OF THE PBO:

Projected benefit obligation at the beginning of 2017 $ 504,095

Service cost, 2017 $ 97,390

Loss (gain) on PBO for the current year $ 9,602

- CY G/L on PBO from changes in assumptions -----

Less: Benefits paid to retirees during the year $ (137,170)

COMPONENTS OF THE PLAN ASSETS:

Plan assets at the beginning of the year $ 404,647

Cash contributions to the pension plan in 2017 $ 120,710

Less: Benefits paid to retirees during the year (same as above) $ (137,170)

OTHER INFORMATION NEEDED:

Beginning balance in cash account $ 244,944

Average remaining service years of employees 7 years

ADDITIONAL INFORMATION REPORTED FROM THE ACTUARY AND PLAN TRUSTEE:

Prior Service Cost Information:

Prior Service Costs incurred beginning of 2016 due to a plan amendment $ 89,160

PY changes to plan formula Beginning of year 2017 balance in AOCI for PSC $ 76,423

Gain or Loss already in beginning AOCI Information:

Beginning 2017 year balance AOCI for Net Loss (prev. losses > prev. gains) $ 120,024

- PY diff b/t actual/expected AND PY G/L on PBO from assumptions

Write the journal entry to record ALL ITEMS SEPARATELY. HINT: There are seven legs to this compound journal entry - three debits and four credits

Pension Asset or Liability (show in a t- account)

What is the net pension asset or liability at the END OF YEAR ( do not give me the change in the balance from beginning to end, rather give me END OF YEAR BALANCE)? Indicate amount and whether a net pension asset or liability