Given the following pension reconciliation from the financial statement notes of Company P at December...
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Accounting
Given the following pension reconciliation from the financial statement notes of Company P at December 31, 2016:
Projected benefit obligation $ 330,000
Fair value of plan assets 270,000
Also, the following amounts are reported in Other Comprehensive Income in the 2016 Statement of Stockholders Equity:
Unamortized prior service cost 90,000 debit
Unrecognized net loss 39,000 debit
Additional information for 2017:
1.Service costs for 2017 were calculated to be $45,000.
2.The settlement rate (for interest cost) on the PBO was 7%.
3.The expected return on the plan assets was 8%.
4. During 2017, Company P contributed $125,000 to the plan.
5. The prior service costs are being amortized over the remaining years of service of 5 years.
6. The average remaining service life for amortizing unrecognized gains and losses (after application of the corridor) is 10 years.
7. The pension plan paid benefits to retirees totaling $44,000 during 2017.
8. The actuary calculated the following balances at the end of 2017:
PBO = $ 363,800
FVPA = 370,000
From the information above, complete on the answer sheet: (1) the Pension Schedules, (2) the journal entry for 2017, and (3) the T-accounts. Include proper titles for each of the missing items in the pension schedules. Abbreviations are acceptable, both here, and on the exam.
