The Company's "Books and Records" GENERAL JOURNAL ENTRIES					MEMO RECORD for SEPARATE PENSION FUND
The Employer's Financial Statements					The Pension Plan managed under a Pension Trustee
INCOME STATEMENT Annual Pension Expense	BALANCE SHEET				Plan Fund Liabilities	Plan Assets
	Cash DEBIT/ (Credit)	AOCI - Prior Service Costs	Pension Asset Debit/ Liability (Credit)		Projected Pension Obligation
				(*) credit
					0	0

1	This is the start of a new calendar year for this
	unnamed company
	The company's pension plan begins the year with
	a. 200,000 in Plan Asset
	b. 50,000 in Plan Obligations
	c. after you record these two items record the
	net Pension Asset or Liability.
2	At the very start of the year, the company
	changes the pension plan for ALL its retirees and
	exisitng workers. As a result of this change the Company
	must recognize a Prior Service Cost of 150,000
3	The current period expense or current year
	Service Cost is estimated by the actuary to be
	50,000
4	The actuary uses a settlement rate of 5%. Please
	use it to estimate the interest cost on Pension
	Obligations for this year.

5	The Pension Trustee informs the company at the
	end of the year that the actual return on plan
	assets was NEGATIVE 2% due to the Covid-19 crisis.

6	The company informs its outside auditor, KPMG, that it
	has decided to use an Estimated Rate of Return for
	pension accounting purposes of 3%, a reduced rate from
	historical levels because of the government intervention in
	the capital markets.
7	The company makes a contribution of 125,000 to the pension
	using cash
8	The Pension Trustee makes total pension payments to retirees
	of $75000
9	The outside auditor, KMPG, informs the company that it must
	amortize 25,000 of the prior service cost due to the plan change
	into the current period's Income Statement as an expense
10	Sum up and complete the worksheet and use it to present
	the accounting journal entries for this year's pension accounting
	Use the box that has been blocked off for this.