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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 2019, the pension formula was amended, creating a prior service cost of $220,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) ($ 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 Net Loss - AOCI PBO $ (580.0) $ 520.0 $ 209.0 $ 58.0 (29.0) Prior Service Cost-AOCI Plan Assets $ (635.0) $ 520.0 $ 198.0 $ 13.0 Pension Expense 71.0 $ 98.0 (41.6) 56.4 Cash Net Pension (Liability) /Asset $ (60.0) (82.0) $ 22.0 (38.0)

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 $220,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) ($ 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 Net Loss - AOCI PBO $ (580.0) $ 520.0 $ 209.0 $ 58.0 (29.0) Prior Service Cost-AOCI Plan Assets $ (635.0) $ 520.0 $ 198.0 $ 13.0 Pension Expense 71.0 $ 98.0 (41.6) 56.4 Cash Net Pension (Liability) /Asset $ (60.0) (82.0) $ 22.0 (38.0)

FINANCIAL ACCOUNTING
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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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 $220,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) ($ 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 Prior Service Assets Cost-AOCI Plan Net Loss - AOCI PBO $ (580.0) $ 520.0 $ 209.0 $ 58.0 (29.0) $ (635.0) $ 520.0 $ 198.0 $ 13.0 Pension Expense 71.0 $ 98.0 (41.6) 56.4 Cash Net Pension (Liability) /Asset (82.0) $ $ (60.0) 22.0 (38.0)
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 2019, the pension formula was amended, creating a prior service cost of $220,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) ($ 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 Prior Service Assets Cost-AOCI Plan Net Loss - AOCI PBO $ (580.0) $ 520.0 $ 209.0 $ 58.0 (29.0) $ (635.0) $ 520.0 $ 198.0 $ 13.0 Pension Expense 71.0 $ 98.0 (41.6) 56.4 Cash Net Pension (Liability) /Asset (82.0) $ $ (60.0) 22.0 (38.0)
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