Please only answer if you can answer correctly. All information needed is shown. The question has all of the information needed!
21
Glass Act, Ltd. provided you with the following information regarding its defined-benefit pension plan. i (Click the icon to view the information.) Read the requirements. Requirement a. Prepare the separate "conceptual" journal entries for the preceding relevant information. (Abbreviation used: OCI = Other Comprehensive Income. Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the table blank.) Begin by preparing the required conceptual journal entry, if any, for service costs for the current year. Account Current Year Service Cost 128,000 Projected Benefit Obligation 128,000 Prepare the required conceptual journal entry, if any, for the prior service costs awarded during the current year. Exclude any amortization of prior service costs. Account Current Year OCI - Prior Service Costs 19,500 Projected Benefit Obligation 19,500 Prepare the required conceptual journal entry, if any, for amortization of prior service costs. Account Current Year Pension Expense 5,000 OCI - Prior Service Costs 5,000 Prepare the required conceptual journal entry, if any, for interest on the projected benefit obligation (PBO). Account Current Year - More info Beginning plan assets at fair value (market-related value), $630,000 Beginning projected benefit obligation (PBO), $520,000 Service cost for the year, $128,000 Settlement rate, 10% Expected return on plan assets, 5% Actual return on plan assets, $26,700 loss Contributions for the year, $41,800 Benefit payments for the year, $95,000 Beginning accumulated other comprehensive income, $48,000 (due to unamortized net actuarial gains) Prior service costs awarded during the year (not effective as of the beginning of the year) for vested employees, $19,500 Amortization of prior service costs, $5,000 Decrease in the ending projected benefit obligation due to changes in actuarial assumptions (i.e., actuarial gain), $4,000 Average remaining service life of the employee base, 10 years Requirements a. Prepare the separate "conceptual" journal entries for the preceding relevant information. b. Compute the total pension cost for the year. c. Determine the ending balances of the plan assets and the projected benefit obligation and indicate the funded status of the plan. d. Prepare the journal entry to record the current year's pension cost. Glass Act, Ltd. provided you with the following information regarding its defined-benefit pension plan. i (Click the icon to view the information.) Read the requirements. Requirement a. Prepare the separate "conceptual" journal entries for the preceding relevant information. (Abbreviation used: OCI = Other Comprehensive Income. Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the table blank.) Begin by preparing the required conceptual journal entry, if any, for service costs for the current year. Account Current Year Service Cost 128,000 Projected Benefit Obligation 128,000 Prepare the required conceptual journal entry, if any, for the prior service costs awarded during the current year. Exclude any amortization of prior service costs. Account Current Year OCI - Prior Service Costs 19,500 Projected Benefit Obligation 19,500 Prepare the required conceptual journal entry, if any, for amortization of prior service costs. Account Current Year Pension Expense 5,000 OCI - Prior Service Costs 5,000 Prepare the required conceptual journal entry, if any, for interest on the projected benefit obligation (PBO). Account Current Year - More info Beginning plan assets at fair value (market-related value), $630,000 Beginning projected benefit obligation (PBO), $520,000 Service cost for the year, $128,000 Settlement rate, 10% Expected return on plan assets, 5% Actual return on plan assets, $26,700 loss Contributions for the year, $41,800 Benefit payments for the year, $95,000 Beginning accumulated other comprehensive income, $48,000 (due to unamortized net actuarial gains) Prior service costs awarded during the year (not effective as of the beginning of the year) for vested employees, $19,500 Amortization of prior service costs, $5,000 Decrease in the ending projected benefit obligation due to changes in actuarial assumptions (i.e., actuarial gain), $4,000 Average remaining service life of the employee base, 10 years Requirements a. Prepare the separate "conceptual" journal entries for the preceding relevant information. b. Compute the total pension cost for the year. c. Determine the ending balances of the plan assets and the projected benefit obligation and indicate the funded status of the plan. d. Prepare the journal entry to record the current year's pension cost
