For accounting purposes • Interest rate used for pension amounts, 5%. . Post service cost, granted as of 1 January 20X5, $350,000. This is also the defined benefit obligation on 1 January. • Current service cost for 20X5, appropriately measured for accounting purposes, $82,000. For funding purposes ⚫ Funding was $107,000 in 20X5 for all pension amounts. The payment was made on 31 December. Actual earnings on fund assets, zero. Required: 1. Prepare a pension spreadsheet that summarizes relevant pension date for 20X5. Answer is complete and correct. Pension Obligation Plan Assets Pension Expense 20X5 Beginning - PSC S (350,000) CSC Interest (82,000) ▼ (17,500) $ 350,000 → 82,000 → 17,500 S 449,500 Funding S (449,500) 107,000 107,000 Net Pension Asset/Llab (449,500) 107,000 $ 342,500 Accumulated OCI 2. Prepare a pension spreadsheet that summarizes relevant pension data for 20X6. The following facts relate to 20X6: • Current service cost for accounting was $126,000. A plan amendment on 1 January resulted in a past service cost of $55,000 being granted. • Total funding of the pension plan was $133,000, on 31 December 20x6. • Actual return on fund assets was $10,400. ⚫ An actuarial revaluation was done to reflect new information about expected turnover rates in the employee population. This resulted in a $50,000 increase in the defined benefit obligation, as of 31 December 20X6. Answer is not complete. Pension Obligation Plan Assets Pension Expense Net Penelon Asset/Llab. Accumulated OCI 20X6 Opening $ (449,500) $ 107,000 → $ (342,500) CSC (126,000) Net interest (22,475) 5,350 PSC (new) 55,000 126,000 17,125x 55,000 Actuarial gains/losses 5,050 Revaluation (50,000) 5,050 50,000 (5,050) 50,000 S 198,125 x Funding 133,000 133,000 $ 702,975 $ 250,400 S 287,450 S 44,950
For accounting purposes • Interest rate used for pension amounts, 5%. . Post service cost, granted as of 1 January 20X5, $350,000. This is also the defined benefit obligation on 1 January. • Current service cost for 20X5, appropriately measured for accounting purposes, $82,000. For funding purposes ⚫ Funding was $107,000 in 20X5 for all pension amounts. The payment was made on 31 December. Actual earnings on fund assets, zero. Required: 1. Prepare a pension spreadsheet that summarizes relevant pension date for 20X5. Answer is complete and correct. Pension Obligation Plan Assets Pension Expense 20X5 Beginning - PSC S (350,000) CSC Interest (82,000) ▼ (17,500) $ 350,000 → 82,000 → 17,500 S 449,500 Funding S (449,500) 107,000 107,000 Net Pension Asset/Llab (449,500) 107,000 $ 342,500 Accumulated OCI 2. Prepare a pension spreadsheet that summarizes relevant pension data for 20X6. The following facts relate to 20X6: • Current service cost for accounting was $126,000. A plan amendment on 1 January resulted in a past service cost of $55,000 being granted. • Total funding of the pension plan was $133,000, on 31 December 20x6. • Actual return on fund assets was $10,400. ⚫ An actuarial revaluation was done to reflect new information about expected turnover rates in the employee population. This resulted in a $50,000 increase in the defined benefit obligation, as of 31 December 20X6. Answer is not complete. Pension Obligation Plan Assets Pension Expense Net Penelon Asset/Llab. Accumulated OCI 20X6 Opening $ (449,500) $ 107,000 → $ (342,500) CSC (126,000) Net interest (22,475) 5,350 PSC (new) 55,000 126,000 17,125x 55,000 Actuarial gains/losses 5,050 Revaluation (50,000) 5,050 50,000 (5,050) 50,000 S 198,125 x Funding 133,000 133,000 $ 702,975 $ 250,400 S 287,450 S 44,950
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:For accounting purposes
• Interest rate used for pension amounts, 5%.
.
Post service cost, granted as of 1 January 20X5, $350,000. This is also the defined benefit obligation on 1 January.
• Current service cost for 20X5, appropriately measured for accounting purposes, $82,000.
For funding purposes
⚫ Funding was $107,000 in 20X5 for all pension amounts. The payment was made on 31 December.
Actual earnings on fund assets, zero.
Required:
1. Prepare a pension spreadsheet that summarizes relevant pension date for 20X5.
Answer is complete and correct.
Pension
Obligation
Plan
Assets
Pension
Expense
20X5
Beginning - PSC
S (350,000)
CSC
Interest
(82,000) ▼
(17,500)
$ 350,000 →
82,000 →
17,500
S
449,500
Funding
S (449,500)
107,000
107,000
Net
Pension
Asset/Llab
(449,500)
107,000
$
342,500
Accumulated
OCI
2. Prepare a pension spreadsheet that summarizes relevant pension data for 20X6. The following facts relate to 20X6:
• Current service cost for accounting was $126,000.
A plan amendment on 1 January resulted in a past service cost of $55,000 being granted.
• Total funding of the pension plan was $133,000, on 31 December 20x6.
• Actual return on fund assets was $10,400.
⚫ An actuarial revaluation was done to reflect new information about expected turnover rates in the employee population. This
resulted in a $50,000 increase in the defined benefit obligation, as of 31 December 20X6.
Answer is not complete.
Pension
Obligation
Plan
Assets
Pension
Expense
Net
Penelon
Asset/Llab.
Accumulated
OCI
20X6
Opening
$ (449,500) $ 107,000 →
$ (342,500)
CSC
(126,000)
Net interest
(22,475)
5,350
PSC (new)
55,000
126,000
17,125x
55,000
Actuarial gains/losses
5,050
Revaluation
(50,000)
5,050
50,000
(5,050)
50,000
S
198,125 x
Funding
133,000
133,000
$ 702,975 $ 250,400
S
287,450 S
44,950
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