Could someone look over this and then answer #11?

The following information relate to the defined benefit pension plan of Lorentz Corp. as of 1/1/x1

Projected benefit obligation 1,665,000

Fair value of plan assets 1,513,500

Unrecognized prior service cost 221,600

Unrecognized net pension gain or (loss) (65,000)

Pension data for 20x1 and 20x2: 20x1 20x2

Service cost 87,000 98,000

Contributions to pension plan 120,000 125,000

Benefits paid to retirees 132,000 140,000

Actual return on pension plan assets 26,350 180,000

Amortization of prior service costs 53,000 42,000

Settlement interest rate 11% 11%

Expected rate of return on plan assets 10% 10%

Accumulated benefit obligation 12/31 1,620,000 1,850,000

Vested benefit obligation 12/31 1,200,000 1,500,000

Average remaining service lives of employees 12 years 14 years

Calculate the PBO at 12/31/x1 and 12/31/x2

	20x1	20x2
Beginning balance	1,665,000	1803150
Service cost	87000	98000
Interest	183150	198347
Benefits paid to retirees	(132000- see p1202)	(140000)
Ending balance	1803150	1959497

2. Calculate the fund balance at 12/31/x1 and 12/31/x2

	20x1	20x2
Beginning balance	1,513,500	1527850
Contributions to pension plan	120000	125000
Actual return on pension plan assets	26350	180000
Benefits paid to retirees	(132000)	(140000)
Ending balance	1527850	1692850

3. The corridor (10% greater of 1665000 or 1513500) for amortization of gain or loss is,

for 20x1 $166500 for 20x2 $180315

4. Calculate the experience gain or loss, if any for 20x1 and 20x2

	20x1	20x2
Actual return on plan assets	26350	180000
Expected return on plan assets	151350	152785
Experience gain (loss)	Loss: 125000	Gain: 27215

5. Calculate the amortization of gain or loss, if any for 20x1 and 20x2

	20x1	20x2
Cumulative unamortized gains(losses)	(65,000)	(125000)
Corridor for gain/loss amortization	166500	180315
Excess, if any	None	None
Amortization period	12	14
Amount of gain/loss to amortize, if any	None- in corridor	None- in corridor

6. Calculate pension expense (sometimes referred to net pension cost) for 20x1 and 20x2

	20x1	20x2
Service Cost	87000	98000
Interest	183150	198347
Return	26350	180000
Amortization of PSC	53000	42000
Amortization of gain/loss	none	none
Net Pension Cost	296800	158347

7. Make journal entries to record pension expense for 20x1 and 20x2

2011:

DR pension exp 296800

CR cash 120000

CR prepaid/accrued pension cost 176800

2012:

DR pension exp 158347

CR cash 125000

CR prepaid/accrued pension cost 33347

8. Calculate the funded status for 20x1 and 20x2

	20x1	20x2
Projected benefit obligation	1803150	1959497
Fair value of plan assets	1527850	1692850
Funded Status	-275300	-266647

Assume that all prior years, cumulative pension expense exceeded contributions by $31,500.

9. Calculate the balance in Prepaid/Accrued Pension Cost at 12/31/x1 and 12/31/x2

	20x1	20x2
Beginning balance - Debit (Credit)	(31,500)	(208300)
Debit (Credit) entry	(176800)	(33347)
Ending balance - Debit (Credit)	(208300)	(241647)

10. Calculate the additional liability balance, if any, needed at 12/31/x1 and 12/31/x2

	20x1	20x2
Funded Status - Debit (Credit)	(275300)	(266647)
Debit (Credit) bal (Prepaid/Accrued)	(208300)	(241647)
Additional liability balance	(483600)	(508294)

11. Make the adjusting entry, if any, needed to report the balance sheet reporting requirement (Hint, the additional liability balance at 12/31/x0 is zero) at 12/31/x1 and 12/31/x2.