Question
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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