I was wondering if a tutor can help me with this pension plan worksheet I have to do for my accounting class. I have already completed most of the chart on excel and uploaded the file, I am just confused about what to put for the Net Gain and Loss on PBO. Can anyone help?
| ()s indicate |
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|
Prior |
|
|
|
Net Pension |
| credits' debits |
Plan |
|
Service |
Net |
Pension |
|
(Liability)/ |
| otherwise |
Assets |
PBO |
Cost |
Gain |
Expense |
Cash |
Asset |
| Balance, 1/1 |
mce_markernbsp; 1,500,000.00 |
$ (2,100,000.00) |
mce_markernbsp; 150,000.00 |
|
|
|
$ (600,000.00) |
| Service cost |
|
mce_markernbsp; (300,000.00) |
|
|
mce_markernbsp; 300,000.00 |
|
$ (300,000.00) |
| Interest cost 8% |
|
mce_markernbsp; (168,000.00) |
|
|
mce_markernbsp; 168,000.00 |
|
$ (168,000.00) |
| EROA 10% |
mce_markernbsp; 150,000.00 |
|
|
|
$ (150,000.00) |
|
mce_markernbsp; 150,000.00 |
| AROA 8% |
|
|
|
|
|
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|
| Actual-Expected Return on Assets -2% |
mce_markernbsp; (30,000.00) |
|
|
mce_markernbsp; 30,000.00 |
|
|
mce_markernbsp; (30,000.00) |
| Amortization: |
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|
|
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|
| Prior service cost 10 |
|
|
mce_markernbsp; (15,000.00) |
|
mce_markernbsp; 15,000.00 |
|
|
| Net Gain 10 |
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| Loss on PBO |
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| Prior service cost |
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| Cash funding |
mce_markernbsp; 450,000.00 |
|
|
|
|
$ (450,000.00) |
450000 |
| Retiree benefits |
mce_markernbsp; (225,000.00) |
mce_markernbsp; 225,000.00 |
|
|
|
|
$ (225,000.00) |
| balance, 12/31 |
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