Jim again. In 20x5 the benefit formula was changes so that the end of each year during retirement Jim will receive 4% of his final salary for each year of service.
1. the PBO at 12/31/x4 using the old formula was $34,102
the PBO at 12/31/x4 using the new formula is?
2. the additional PSC is
Make the journal entry to record the additional PSC
OTHER COMPREHENSIVE INCOME - PSC
PENSION ASSET/LIABILITY
3. The Unamortized PSC now totals?
Beginning PSC, from initiating the plan 1/1/x3
$24,425
Amortization (2 years) 20x3 and 20x4
Unamortized, initial PSC @ 12/31/x4
Increase due to plan amendment
Unamortized PSC, 1/1/x5
4. The service cost component for 20x5 is
5. The interest component for 20x5 is
6. The return component for 20x5 is
7. Amortization for PSC for 20x5 is
8. Pension Expense for 20x5 is
9. Make the journal entry to record pension expense for 20x5. for simplicity, assume the amount funded each year is $12000
Pension Expense
Pension Asset/Liabilitu
Cash 12000
OCI - PSC
10. the PBO at 12/31/x5 is
11. the fund balance at 12/31/x5 is
12. the funded status at 12/31/x5 is
13. The accumulated OCI-PSC balance on the books is (show the T account)
14. The pension asset/liability balance on the books is (show the T account)
4. What amounts will appear on the balance sheet?
Assets
Defferd Tax Asset
Liabilities
Pension liability
Owners Equity
Accumulated Other Comprehensive Income
