Complete the following questions In addition to answering the items below, you must submit an analysis of the assignment Analyze the specific outcomes and write an analysis directed toward the team at Melanie Vail Corp describing what the numbers mean and how they relate to the business Submit journal entries in an Excel file and written segments in an MS Word document For written answers, please make sure your responses are well written, formatted per CSU Global Guide to Writing and APA and have proper citations, if applicable Melanie Vail Corp sponsors a defined benefit pension plan for its employees On January 1, 2017, the following balances relate to this plan Plan assets $480,000 Projected benefit obligation 625,000 Accumulated OCI (PSC) 100,000 Dr Accumulated OCI (Gain Loss) 85,000 Cr As a result of the operation of the plan during 2017, the following additional data are provided by the actuary Service cost for 2017 $90,000 Settlement rate 9 Actual return on plan assets in 2017 57,000 Expected return on plan assets 10 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,000 Contributions in 2017 99,000 Benefits paid retirees in 2017 85,000 Avg remaining service life (all employees) 12 years Click the link below to download an Excel workbook containing the spreadsheets you will need for this exercise Use the spreadsheet Pensions to prepare a pension worksheet On the pension worksheet, compute pension expense, pension asset liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2017 Indicate the reporting of the 2017 pension amounts in the income statement and balance sheet using the spreadsheet Pensions What is the amount of deferred pension gain or loss that the company will carry forward to 2018 Compute the same items as in ( 1), assuming that the expected rate of return is 14 and the Accumulated OCI (Gain Loss) is a Debit balance at January 1, 2017

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 18, 2024

Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write

Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Melanie Vail Corp. describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per CSU-Global Guide to Writing and APA and have proper citations, if applicable.

Melanie Vail Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan.

Plan assets	$480,000
Projected benefit obligation	625,000
Accumulated OCI (PSC)	100,000 Dr.
Accumulated OCI (Gain/Loss)	85,000 Cr.

As a result of the operation of the plan during 2017, the following additional data are provided by the actuary:

Service cost for 2017	$90,000
Settlement rate	9%
Actual return on plan assets in 2017	57,000
Expected return on plan assets	10%
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions	76,000
Contributions in 2017	99,000
Benefits paid retirees in 2017	85,000
Avg. remaining service life (all employees)	12 years

Click the link below to download an Excel workbook containing the spreadsheets you will need for this exercise.

Use the spreadsheet Pensions to prepare a pension worksheet. On the pension worksheet, compute pension expense, pension asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss.

Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2017.

Indicate the reporting of the 2017 pension amounts in the income statement and balance sheet using the spreadsheet Pensions.

What is the amount of deferred pension gain or loss that the company will carry forward to 2018?

Compute the same items as in (#1), assuming that the expected rate of return is 14% and the Accumulated OCI (Gain/Loss) is a Debit balance at January 1, 2017.