A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2019, the pension formula was amended, creating a prior service cost of $240,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) ($ in thousands) Balance, Jan. 1, 2021 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization: Prior service cost Amortization: Net loss Gain on PBO Prior service cost Cash funding Retiree benefits Balance, Dec. 31, 2021 Plan PBO Assets S (560.0) S 540.0 S (28.0) S (614.0) S Prior Service Cost - AOCI 228.0 540.0 S 216.0 Net Loss - AOCI $ 56.0 14.0 Pension Expense $ 70.0 $ 100.0 (43.2) 56.8 Cash (84.0) Net Pension (Liability) / Asset S S (20.0) 24.0 4.0

A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2019, the pension formula was amended, creating a prior service cost of $240,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) ($ in thousands) Balance, Jan. 1, 2021 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization: Prior service cost Amortization: Net loss Gain on PBO Prior service cost Cash funding Retiree benefits Balance, Dec. 31, 2021 Plan PBO Assets S (560.0) S 540.0 S (28.0) S (614.0) S Prior Service Cost - AOCI 228.0 540.0 S 216.0 Net Loss - AOCI $ 56.0 14.0 Pension Expense $ 70.0 $ 100.0 (43.2) 56.8 Cash (84.0) Net Pension (Liability) / Asset S S (20.0) 24.0 4.0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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