The following information relate to the defined benefit pension plan of Lorentz Corp. as of 1/1/x1

Projected benefit obligation 1,665,000

Fair value of plan assets 1,513,500

Unrecognized prior service cost 221,600

Unrecognized net pension gain or (loss) (65,000)

Pension data for 20x1 and 20x2: 20x1 20x2

Service cost 87,000 98,000

Contributions to pension plan 120,000 125,000

Benefits paid to retirees 132,000 140,000

Actual return on pension plan assets 26,350 180,000

Amortization of prior service costs 53,000 42,000

Settlement interest rate 11% 11%

Expected rate of return on plan assets 10% 10%

Accumulated benefit obligation 12/31 1,620,000 1,850,000

Vested benefit obligation 12/31 1,200,000 1,500,000

Average remaining service lives of employees 12 years 14 years

Calculate the PBO at 12/31/x1 and 12/31/x2

	20x1	20x2
Beginning balance	1,665,000
Service cost
Interest
Benefits paid to retirees
Ending balance

2. Calculate the fund balance at 12/31/x1 and 12/31/x2

	20x1	20x2
Beginning balance	1,513,500
Contributions to pension plan
Actual return on pension plan assets
Benefits paid to retirees
Ending balance

3. The corridor for amortization of gain or loss is, for 20x1 $_____________ for 20x2 $_____________

4. Calculate the experience gain or loss, if any for 20x1 and 20x2

	20x1	20x2
Actual return on plan assets
Expected return on plan assets
Experience gain (loss)

5. Calculate the amortization of gain or loss, if any for 20x1 and 20x2

	20x1	20x2
Cumulative unamortized gains(losses)	(65,000)
Corridor for gain/loss amortization
Excess, if any
Amortization period
Amount of gain/loss to amortize, if any

6. Calculate pension expense (sometimes referred to net pension cost) for 20x1 and 20x2

	20x1	20x2
Service Cost
Interest
Return
Amortization of PSC
Amortization of gain/loss
Net Pension Cost

7. Make journal entries to record pension expense for 20x1 and 20x2

8. Calculate the funded status for 20x1 and 20x2

	20x1	20x2
Projected benefit obligation
Fair value of plan assets
Funded Status

Assume that all prior years, cumulative pension expense exceeded contributions by $31,500.

9. Calculate the balance in Prepaid/Accrued Pension Cost at 12/31/x1 and 12/31/x2

	20x1	20x2
Beginning balance - Debit (Credit)	(31,500)
Debit (Credit) entry
Ending balance - Debit (Credit)

10. Calculate the additional liability balance, if any, needed at 12/31/x1 and 12/31/x2

	20x1	20x2
Funded Status - Debit (Credit)
Debit (Credit) bal (Prepaid/Accrued)
Additional liability balance

11. Make the adjusting entry, if any, needed to report the balance sheet reporting requirement (Hint, the additional liability balance at 12/31/x0 is zero) at 12/31/x1 and 12/31/x2.