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 2022, the pension formula was amended, creating a prior service cost of $240,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year, as well as, the previous two years. Required: Fill in the missing amounts. Note: Enter your answers in thousands (I.e., 5,500 should be entered as 5.5). Enter credit amounts with a minus sign. ($ in thousands) Balance, January 1, 2024 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, December 31, 2024 PBO $ (560.0) (28.0) S (614.0) Plan Assets S 540.0 $ 540.0 Prior Service Net Loss- Cost-AOCI AOCI $ S 228.0 216.0 $ S 56.0 14.0 Pension Expense 70.0 $ 100.0 (43.2) 56.8 Cash • (84.0) Net Pension (Liability)/ Asset $ $ (20.0) 24.0 4.0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 2022, the pension formula was amended,
creating a prior service cost of $240,000. The expected rate of return on assets was 8%, and the average remaining service life of the
active employee group is 20 years in the current year, as well as, the previous two years.
Required:
Fill in the missing amounts.
Note: Enter your answers in thousands (I.e., 5,500 should be entered as 5.5). Enter credit amounts with a minus sign.
($ in thousands)
Balance, January 1, 2024
Service cost
Interest cost, 5%
Expected retum 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, December 31, 2024
PBO
$ (560.0)
(28.0)
$ (614.0)
Plan Assets
S
$
Prior Service Net Loss -
Cost-AOCr AOCI
540.0 S
540.0
$
228.0 S
216.0
S
56.0
14.0
Pension
Expense
70.0 $
100.0
(43.2)
56.8
Cash
(84.0)
Net Pension
(Liability) /
Asset
$
$
(20.0)
24.0
4.0
Transcribed Image Text: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 2022, the pension formula was amended, creating a prior service cost of $240,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year, as well as, the previous two years. Required: Fill in the missing amounts. Note: Enter your answers in thousands (I.e., 5,500 should be entered as 5.5). Enter credit amounts with a minus sign. ($ in thousands) Balance, January 1, 2024 Service cost Interest cost, 5% Expected retum 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, December 31, 2024 PBO $ (560.0) (28.0) $ (614.0) Plan Assets S $ Prior Service Net Loss - Cost-AOCr AOCI 540.0 S 540.0 $ 228.0 S 216.0 S 56.0 14.0 Pension Expense 70.0 $ 100.0 (43.2) 56.8 Cash (84.0) Net Pension (Liability) / Asset $ $ (20.0) 24.0 4.0
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