Question
Respond to the following. Submit journal entries in an Excel. Any written segments should be included in Excels comments function. Do not submit two separate
Respond to the following. Submit journal entries in an Excel. Any written segments should be included in Excels comments function. Do not submit two separate documents, as only one document can be accepted. For written answers, make sure your responses are well written, formatted per APA and include TWO (2) Sources.
Melanie Vail Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2015, the following balances relate to this plan.
Plan assets | $480,000 |
Projected benefit obligation | 625,000 |
Accumulated OCI (PSC) | 100,000 |
As a result of the operation of the plan during 2015, the following additional data are provided by the actuary.
Service cost for 2015 | $90,000 |
Settlement rate | 9% |
Actual return on plan assets in 2015 | 57,000 |
Amortization of prior service cost | 19,000 |
Expected return on plan assets | 52,000 |
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions | 76,000 |
Contributions in 2015 | 99,000 |
Benefits paid retirees in 2015 | 85,000 |
Use a spreadsheet Pensions to prepare a pension worksheet. On the pension worksheet, compute pension expense, pension asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss.
Compute the same items as in (#1), assuming that the settlement rate is now 7% and the expected rate of return is 10%.
Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2015. You need to prepare journal entries for only #1 above.
Indicate the reporting of the 2015 pension amounts in the income statement and balance sheet using the spreadsheet Pensions. You need to show financial statements presentations for only #1 above.
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