1. Captiva Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2016, with the following beginning balances: plan assets $600,000; projected benefit obligation $600,000. Other data relating to 3 years operation of the plan are shown below:

Instructions

(a) Prepare a pension worksheet presenting all 3 years pension balances and activities. Use of Excel is REQUIRED.

(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.

(c) Indicate the pension-related amounts reported in the financial statements for 2018.

2018 $ 61,000 8% Annual service cost Settlement rate and expected rate of return Actual return on plan assets Annual funding (contributions) Benefits paid Prior service cost (plan amended, 1/1/17) Amortization of prior service cost Change in actuarial assumptions establishes a December 31, 2018, projected benefit obligation of: 2016 $40,000 8% 40,000 11,000 26,000 2017 $ 48,000 8% 50,000 30,000 31,000 280,000 38,000 60,000 58,000 45,000 56,000 980,000