Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a partially completed pension spreadsheet showing

A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension...

Free

90.2K

Verified Solution

Question

Accounting

A partially completed pension spreadsheet showing therelationships among the elements that comprise the defined benefitpension plan of Universal Products is given below. The actuary'sdiscount rate is 5%. At the end of 2019, the pension formula wasamended, creating a prior service cost of $100,000. The expectedrate of return on assets was 8%, and the average remaining servicelife of the active employee group is 20 years in the current yearas well as the previous two years.

Required:
Fill in the missing amounts. (Enter your answers inthousands rounded to 1 decimal place.)

PriorNet Pension
PlanServiceNet LossPension(Liability)
($ in thousands)PBOAssetsCost – AOCI– AOCIExpenseCash/ Asset
Balance, Jan. 1, 2021$(700.0)$400.0$95.0$70.0$(300.0)
Service cost86.0
Interest cost, 5%(35.0)
Expected return on assets(32.0)
Adjust for:
Loss on assets7.0
Amortization:
Prior service cost
Amortization:
Net loss
Gain on PBO10.0
Prior service cost
Cash funding(70.0)
Retiree benefits
Balance, Dec. 31, 2021$(761.0)$400.0$90.0$77.0$54.0$(290.0)

Answer & Explanation Solved by verified expert
4.2 Ratings (725 Votes)

Prior Net pension
Plan service Net Pension (Liability) /
($ in thousands) PBO Assets Cost - AOCI Loss - AOCI Expense Cash Assets
Balance, Jan. 1, 2021 -$700.0 $400.0 $95.0 $70.0 $0.0 $0.0 -$300.0
Service cost -$86.0 $86.0 -$86.0
Interest cost, 5% -$35.0 $35.0 -$35.0
Expected return on assets $32.0 -$32.0 $32.0
Adjust for:
Loss on Assets -$7.0 $7.0 -$7.0
Amortization
Prior service cost -$5.0 $5.0
Amortization
Net loss $0.0 $0.0
Gain on PBO $10.0 -$10.0 $10.0
Prior service cost $0.0 $0.0 $0.0
Cash funding $70.0 -$70.0 $70.0
Retiree benefits $50.0 -$50.0
Balance., Dec. 31, 2021 -$761.0 $445.0 $90.0 $67.0 $94.0 -$70.0 -$316.0
Workings :
Computation of net loss amortization :
Net loss–AOCI $             70
10% of $700 PBO (greater than $400 Plan assets) $             70
Amount to be amortized $             -  

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

2 Using a Brute Force method with a tree diagram find the least expensive round...

Basic Math
Q

A team of size m has to be chosen from a group of n people...

Advance Math
Q

To transfer a fix amount of electrical energy while keeping Ohmic heating low, it is good...

Physics
Q

Consider an AM modulator with the followings: the message signal is m(t)= 0.5 cos (2Ï€fmt), the...

Electrical Engineering
Q

The impedance of R C circuit is Z for a frequency f and Z for...

Physics
Q

Solve the equation Be sure to check your solution 5 16 5 8 Z

Algebra
Q

Blossom Limited is trying to deternine the value of its ending imentory as...

Accounting
Q

Facts:

Accounting
Q

Beta Corporation manufactures two products: Product 1 and Product 2. The company uses a plantwide...

Accounting
Q

CVP analysis relies on all of the following assumptions except: Multiple choice question. ...

Accounting
Q

Glow Co. reacquired 60,000 shares of its common stock at $25 per share. The balance...

Accounting
Q

Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities...

Accounting