Question
III. Comprehensive Pension Problem Given the following pension reconciliation from the financial statement notes of Company P at December 31, 2016: Projected benefit obligation $
III. Comprehensive Pension Problem
Given the following pension reconciliation from the financial statement notes of Company P at December 31, 2016:
Projected benefit obligation $ 330,000
Fair value of plan assets 270,000
Also, the following amounts are reported in Other Comprehensive Income in the 2016 Statement of Stockholders Equity:
Unamortized prior service cost 90,000 debit
Unrecognized net loss 39,000 debit
Additional information for 2017:
- Service costs for 2017 were calculated to be $45,000.
- The settlement rate (for interest cost) on the PBO was 7%.
- The expected return on the plan assets was 8%.
4. During 2017, Company P contributed $65,000 to the plan.
5. The prior service costs are being amortized over the remaining years of service of 5 years.
6. The average remaining service life for amortizing unrecognized gains and losses (after application of the corridor) is 10 years.
7. The pension plan paid benefits to retirees totaling $44,000 during 2017.
8. The actuary calculated the following balances at the end of 2017:
PBO = $ 363,800
FVPA = 321,000
From the information above, complete on the answer sheet: (1) the Pension Schedules, (2) the journal entry for 2017, and (3) the T-accounts. Include proper titles for each of the missing items in the pension schedules. Abbreviations are acceptable, both here, and on the exam.
III. Comprehensive Pension Problem
Pension Expense Components:
__________________ ___________
__________________ ___________
__________________ ___________
__________________ ___________
__________________ ___________
Pension Expense ___________
PBO FVPA
Beginning ___________ Beginning ___________
_____________ ___________ ______________ ___________
_____________ ___________ ______________ ___________
_____________ ___________ ______________ ___________
=End. Unadjusted ___________ =Ending Unadjusted ___________
______________ ___________ _______________ ___________
= Ending Reported ___________ =Ending Reported ___________
Journal Entry:
Ending Balances:
Pension Asset Liab. OCI U PSC OCI-U Net G/
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started