2. Prepare a pension spreadsheet that summarizes relevant pension data for 20X6. The following facts relate to 20X6: Current service cost for accounting was $128,000. • A plan amendment on 1 January resulted in a past service cost of $56,000 being granted. Total funding of the pension plan was $134,000, on 31 December 20X6. • Actual return on fund assets was $10,500. • An actuarial revaluation was done to reflect new information about expected turnover rates in the employee population. This resulted in a $51,000 increase in the defined benefit obligation, as of 31 December 20X6. 20X6 Opening CSC Net interest PSC (new) Actuarial gains/losses Revaluation Funding Pension Obligation Plan Assets Pension Expense Net Pension Accumulated Asset/Liab. OCI Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following information is available: For accounting purposes Interest rate used for pension amounts, 5%. Past service cost, granted as of 1 January 20X5, $360,000. This is also the defined benefit obligation on 1 January. Current service cost for 20X5, appropriately measured for accounting purposes, $83,000. For funding purposes Funding was $107,500 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 data for 20X5. Pension Obligation Plan Assets Pension Expense Net Pension Asset/Liab. 20X5 Beginning - PSC CSC Interest Funding 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 $128,000. • A plan amendment on 1 January resulted in a past service cost of $56,000 being granted. Total funding of the pension plan was $134,000, on 31 December 20X6. • Actual return on fund assets was $10,500. • An actuarial revaluation was done to reflect new information about expected turnover rates in the employee population. This resulted in a $51,000 increase in the defined benefit obligation, as of 31 December 20X6. 20X6 Opening CSC Net interest PSC (new) Actuarial gains/losses Revaluation Funding Pension Obligation Plan Assets Pension Expense Net Pension Accumulated Asset/Liab. OCI Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following information is available: For accounting purposes Interest rate used for pension amounts, 5%. Past service cost, granted as of 1 January 20X5, $360,000. This is also the defined benefit obligation on 1 January. Current service cost for 20X5, appropriately measured for accounting purposes, $83,000. For funding purposes Funding was $107,500 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 data for 20X5. Pension Obligation Plan Assets Pension Expense Net Pension Asset/Liab. 20X5 Beginning - PSC CSC Interest Funding Accumulated OCI
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2. Prepare a pension spreadsheet that summarizes relevant pension data for 20X6. The following facts relate to 20X6:
Current service cost for accounting was $128,000.
• A plan amendment on 1 January resulted in a past service cost of $56,000 being granted.
Total funding of the pension plan was $134,000, on 31 December 20X6.
• Actual return on fund assets was $10,500.
• An actuarial revaluation was done to reflect new information about expected turnover rates in the employee population. This
resulted in a $51,000 increase in the defined benefit obligation, as of 31 December 20X6.
20X6
Opening
CSC
Net interest
PSC (new)
Actuarial gains/losses
Revaluation
Funding
Pension
Obligation
Plan Assets
Pension
Expense
Net Pension Accumulated
Asset/Liab.
OCI
Transcribed Image Text:Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following
information is available:
For accounting purposes
Interest rate used for pension amounts, 5%.
Past service cost, granted as of 1 January 20X5, $360,000. This is also the defined benefit obligation on 1 January.
Current service cost for 20X5, appropriately measured for accounting purposes, $83,000.
For funding purposes
Funding was $107,500 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 data for 20X5.
Pension
Obligation
Plan Assets
Pension
Expense
Net Pension
Asset/Liab.
20X5
Beginning - PSC
CSC
Interest
Funding
Accumulated
OCI
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