Jim again. In 20x5 the benefit formula was changed so that at the end of each year during retirement Jim will receive 4% of his final salary for each year of service.

1.	The PBO at 12/31/x4 using the old formula was	$	34,102
	The PBO at 12/31/x4 using the new formula is	$

2. The additional PSC is

Make the journal entry to record the additional PSC

OTHER COMPREHENSIVE INCOME PSC

Please show how you get your answers. Unsupported answers will be marked wrong.

10. The PBO at 12/31/x5 is $_______________

11. The fund balance at 12/31/x5 is $_______________

12. The funded status at 12/31/x5 is $_______________

.

13. The Accumulated OCI- PSC balance on the books is $_______________

(Indicate where it is and whether the balance is a debit or credit)

Show the T account

14. The Pension asset/liability balance on the books is $_______________

(Indicate where it is and whether the balance is a debit or credit)

Show the T account

4. What amount (s) will appear on the balance sheet?

Assets		Liabilities
Deferred Tax Asset		Pension Liability
		Owners Equity
		Accumulated Other Comprehensive Income

3. The unamortized PSC now totals? 24,425 Beginning PSC, from initiating the plan 1/1/X3 Amortization (2 years) 20x3 and 20x4 Unamortized, initial PSC @ 12/31/x4 Increase due to plan amendment Unamortized PSC, 1/1/x5 4. The service cost component for 20x5 is # 5 The interest component for 20x5 is $ 6. The return component for 20x5 is $ 7. Amortization of PSC for 20x5 is A' 8. Pension Expense for 20x5 is $ 9. Make the journal entry to record pension expense for 20X5. For simplicity, assume the amount funded each year is $12,000. PENSION EXPENSE PENSION ASSET/LIABILITY CASH 12,000 OTHER COMPREHENSIVE INCOME - PSC 3. The unamortized PSC now totals? 24,425 Beginning PSC, from initiating the plan 1/1/X3 Amortization (2 years) 20x3 and 20x4 Unamortized, initial PSC @ 12/31/x4 Increase due to plan amendment Unamortized PSC, 1/1/x5 4. The service cost component for 20x5 is # 5 The interest component for 20x5 is $ 6. The return component for 20x5 is $ 7. Amortization of PSC for 20x5 is A' 8. Pension Expense for 20x5 is $ 9. Make the journal entry to record pension expense for 20X5. For simplicity, assume the amount funded each year is $12,000. PENSION EXPENSE PENSION ASSET/LIABILITY CASH 12,000 OTHER COMPREHENSIVE INCOME - PSC