Vaughn Corp sponsors a defined benefit pension plan for its employees. The company's actuary provided the following information about the plan at the end of 2017. 12/31/2016 12/31/2017 The average remaining service life of employees is 10 years. Projected benefit obligation $482,040 $515,300 The company amended its pension plan several years ago Plan assets, at fair market value 268,480 and uses the average remaining service life to amortize the Accumulated OCI (PSC) 108,000 beginning Accumulated OCI (Gain/Loss), if needed. A Accumulated OCI (Gain) 62,310 change in actuarial assumptions in 2017 resulted in a change Service cost 26.400 in the company's projected benefit obligation. Settlement rate Actual return 24,200 Expected rate of return 10% Amortization of PSC 22,300 Contributions (funding) 48,500 Benefit paid 20,700 8% Pension Asset/ Liability (III) Memo Record Projected Benefit Plan Oblig. Assets Required: (1) Prepare a pension worksheet for Roland Company in 2017. (8 points) (II) General Journal Entries OCI Pension (I) Items Expense Cash PSC Gain/Loss Beginning Balance PSC Adj. (for amendment year only) Adj. Beginning Balance Pension Activity: Service cost Interest cost Actual return Asset G/L (Adj to Exp Ret) Amort. of PSC Amort. of AOCI (G/L) Funding during year Benefits paid during year Liability G/L Journal entry for the Year Accumulated OCI, B. Bal. Ending Balance (2) Fill out the financial statements below by providing account title after "?" and amount after "$" (2 points) Comprehensive Income Statement (For Year ended 12/31/2017) Partial Balance Sheet (12/31/2017) Net Income $500,100 Liabilities: Other Comprehensive Income (Loss): Stockholders' Equity: Comprehensive Income (Loss) Vaughn Corp sponsors a defined benefit pension plan for its employees. The company's actuary provided the following information about the plan at the end of 2017. 12/31/2016 12/31/2017 The average remaining service life of employees is 10 years. Projected benefit obligation $482,040 $515,300 The company amended its pension plan several years ago Plan assets, at fair market value 268,480 and uses the average remaining service life to amortize the Accumulated OCI (PSC) 108,000 beginning Accumulated OCI (Gain/Loss), if needed. A Accumulated OCI (Gain) 62,310 change in actuarial assumptions in 2017 resulted in a change Service cost 26.400 in the company's projected benefit obligation. Settlement rate Actual return 24,200 Expected rate of return 10% Amortization of PSC 22,300 Contributions (funding) 48,500 Benefit paid 20,700 8% Pension Asset/ Liability (III) Memo Record Projected Benefit Plan Oblig. Assets Required: (1) Prepare a pension worksheet for Roland Company in 2017. (8 points) (II) General Journal Entries OCI Pension (I) Items Expense Cash PSC Gain/Loss Beginning Balance PSC Adj. (for amendment year only) Adj. Beginning Balance Pension Activity: Service cost Interest cost Actual return Asset G/L (Adj to Exp Ret) Amort. of PSC Amort. of AOCI (G/L) Funding during year Benefits paid during year Liability G/L Journal entry for the Year Accumulated OCI, B. Bal. Ending Balance (2) Fill out the financial statements below by providing account title after "?" and amount after "$" (2 points) Comprehensive Income Statement (For Year ended 12/31/2017) Partial Balance Sheet (12/31/2017) Net Income $500,100 Liabilities: Other Comprehensive Income (Loss): Stockholders' Equity: Comprehensive Income (Loss)
