Question
I am working on a pension spreadsheet - Can someone check my work? Here's the question: Scottsdale Corp. sponsors a defined benefit pension plan for
I am working on a pension spreadsheet - Can someone check my work?
Here's the question:
Scottsdale 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
- Use the spreadsheetPensionsto draft the 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 spreadsheetJournal Entriesto record pension expense in 2017.
- Indicate the reporting of the 2017 pension amounts in the income statement and balance sheet using the spreadsheetPensions.
- What is the amount of deferred pension gain or loss that the company will carry forward to 2018?
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