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PLEASE SHOW ALL WORK REQUIREMENT: Prepare 2022 partial financial statements, in good form, for Phelan Companys pension-related information. Phelan Company has a noncontributory, defined benefit

PLEASE SHOW ALL WORK

REQUIREMENT: Prepare 2022 partial financial statements, in good form, for Phelan Companys pension-related information.

Phelan Company has a noncontributory, defined benefit pension plan. On December 31, 2022 (the end of Phelans fiscal year) the following pension-related data were available ($ in millions):

Beginning balances (1/1/2022)

Prior Service Cost- AOCI ................... $32

Net Loss AOCI .................................. 40

Projected Benefit Obligation............. 300

Plan Assets ........................................... 200

2022 Pension Activity:

Cash Contributions ............................ $ 45

Retiree Benefits Paid.......................... 20

Service Cost ....................................... 48

Interest Cost ...................................... 24

Loss Due to Changes in Actuarial

Assumptions ....................... 2

Prior Service Cost Amortization .... 4

Actual Return on Plan Assets........... 15

Expected Return on Plan Assets...... 20

Amortization of Net Loss AOCI ... 1

REQUIREMENT: Prepare 2022 partial financial statements, in good form, for Phelan Companys pension-related information.

HINT: THE EASIEST APPROACH TO THE SOLUTION IS TO SET UP T-ACCOUNTS AND TRACK THE ACTIVITY IN THEM.

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