Problem: The basic financial statements of a pension plan provide only limited amounts of information as to its economic condition. The following information relates to the Lincoln County Firefighters' Pension Plan (dollar amounts in millions):
Beginning-of-Year Balances
Cash and cash equivalents, January 1 $ 67
Marketable securities and other
investments at fair value, January 1 3,180
Current liabilities to retirees, January 1 4
Actuarial accrued liability, January 1 3,430
Transactions during the Year
Contributions received during the year
from employers and employees 138
Benefits to which retirees were entitled during
the year 120
Benefits actually paid to retirees, including
amounts owed from prior year 122
Interest and dividends
earned during the year 145
Net appreciation in fair value of marketable
securities and other investments (i.e., realized
and unrealized gains) during the year 36
Investment and administrative expenses 45
End-of-Year Balances
Cash on hand, December 31 92
Marketable securities and other
investments at fair value, December 31 3,307
Current liabilities to retirees, December 31 2
Actuarial accrued liability, December 31 3,690
Question 1. Prepare a statement of plan net assets available for benefits (balance sheet) as of January 1. You may not have to include all of the data provided.
Question 2. Prepare a statement of changes in plan net assets available for benefits (statement of activities) for the year.
Question 3. Prepare a statement of plan net assets available for benefits (balance sheet) as of December 31.