Return to the facts of A19-19. Assume instead that this pension plan is sponsored by a private company and ASPE applies.

Data From A19-19

Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The  company uses the projected unit credit actuarial cost method for funding and accounting. Longterm  corporate bonds have a yield of 4%. Employees were granted partial credit for past service.  The past service obligation has been measured at $1,640,000 as of 1 January 20X7. The company  will pay $200,000 (for past service) plus all current service cost to the pension plan trustee each  31 December beginning 31 December 20X7. This funding arrangement will continue for five  years and then be re-evaluated.
Data for 20X7 and 20X8:

Required:
Prepare a spreadsheet containing all relevant pension information for 20X7 and 20X8.

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Current service cost Actual return on fund assets Decrease in defined benefit obligation at year-end due to change in assumptions Payments to pensioners at end of year 20X7 20X8 $117,000 $157,000 6,800 37,000 41,400 - -