I need help with all of them, but specifically #14. Thank you so much!
Interest (Cost) Rate 8% Expected Rate of Return on Plan Assets 6% Actual Rate of Return on Plan Assets 4% Projected benefit obligation at the beginning of 2002 $ 350,000 Service cost, 2002 $ 42,000 Loss (Gain) on PBO for the current year $ (26,000) CY G/L on PBO from changes in assumptions Less: Benefits paid to retirees during the year $ (33,000) Projected benefit obligation at the end of 2002 $ 361,000 Plan assets at the beginning of the year $ 380,000 Cash contributions to the pension plan in 2002 $ 48,000 Less: Benefits paid to retirees during the year (same as above) $ (33,000) Plan assets at the end of 2002 $ 410,200 Beginning balance in cash account $ 80,000 Additional information reported from the actuary and plan trustee: Prior Service Costs incurred beginning of 2001 due to a plan amendme $ 75,375 PY changes to plan formula Beginning 2002 year balance AOCI for Net Gain (prev. gains > prev. Id $ (77,000) PY Average remaining service years of employees 15 years Beginning of year 2002 balance in AOCI for PSC $ 62,000 8. What is the journal entry booked for the interest cost incurred in Year 2002? A. Debit Interest Expense for $42,000 and Credit Cash for $42,000 B. Debit Interest Expense for $42,000 and Credit Accrued Interest Payable for $42,000 C. Debit Pension Expense for $42,000 and Credit PBO for $42,000 D. Debit PBO for $42,000 and Credit Interest Expense for $42,000 9. What is the adjustment for gain or loss on plan assets for Year 2002? Enter a gain as a positive value, loss as a negative value, or O if neither is incurred. Do not use any symbols. 10. What is the journal entry recorded to amortize Prior Service Costs for the year? A. Debit Pension Expense for $4,133 and Credit OCI (Equity) for $4,133 B. Debit Pension Expense for $5,025 and Credit OCI (Equity) for $5,025 C. Debit Oci (Equity) for $5,025 and Credit Pension Expense for $5,025 D. Debit OCI (Equity) for $4,133 and Credit Pension Expense for $4,133 11. What is the amortization of the net gain/loss for Year 2002 using the Corridor Method? 12. What is the net impact to the Plan Assets account from the cash contributions to the pension plan AND the benefits paid to retirees both during Year 2002? A. $30,200 Net Increase to Plan Assets B. $48,000 Net Increase to Plan Assets C. $33,000 Net Decrease to Plan Assets D. $15,000 Net Increase to Plan Assets 13. What is total Pension Expense for the Year 2002? A. $54,825 B. $11,000 C. $49,625 D. $39,575 14. What is the funded status of the Pension Plan as of the end of Year 2002? Enter the amount as a positive for Overfunded or as negative for Underfunded. Do not use any symbols
