See attached pictures for questions. If you can't see the pictures, the questions are typed below.

QUESTION 1: Identify whether the following items increase or decrease the balance in the pension accounts provided below. If the transaction does not affect a particular account, indicate no effect.

- The transactions are: 1.) interest costs 2.) amortization of a gain balance in the unrecognized gain/loss account 3.) actual plan asset return is less than expected plan asset return for the year. Assume the OCI - Unrecognized Gain/Loss acount has a loss balance

- And the pension accounts are: Pension Expense, Cash, OCI-Unrecognized Gain/Loss, PBO, Plan Assets.

QUESTION 2: Explain the significance of each of the following items found on corporate financial statements. Note that not all items would necessarily be found on the statements of a single company.

- 1.) "Pension Asset/Liability" found in the asset section of the balance sheet. 2.) "Pension Asset/Liability" found in the liability section of the balance sheet. 3.) "Prior Service Cost" found as part of Accumulated Other Comprehensive Income in the equity section of the balance sheet. 4.) "Pension Expense" found on the income statement.

QUESTION 3: Indicate whether each of the events listed below increase, decreases, or has no effect on an employer's projected benefit obligation.

Events: 1.) Interest cost 2.) Amortization of prior service cost 3.) Decrease in the average life expectancy of employees 4.) A plan amendment that increases benefits is made retroactive to prior years 5.) Cash contributions to the pension fund made by the employer 6.) Benefits paid to retirees 7.) Service cost 8.) The return on plan assets is lower than expected

PENSIONS CHAPTER 20 REQUIREMENT 1 ldentify whether the following temsincrease (I) decrease (D) the balance in pension accounts provided below. Ithe transaction does not affect a particular aocount indicate no effect (NE). Cash Unrecognized PBo Plan Amortization of again balance in the unrecognized gain loss account. Actual plan asset return is less than expected plan asset retum for the year. Assume the OCI-Unrecognized GainLoss account has aloss balance. REQUIREMENT2 Explain the signscance of each of the following iems found on corporate fmancial statements. Note that not al terms would necessarly be found onthe statements of a single company. 1. Pension AssetLiabity foundin the asset secton of the balance sheet 2 Pension AssetLiabilty foundinte lability section ofthe balance sheet CHAPTER 20 HANDOUT IPAGE 1