ACC $302-$ Pensions $-$ Class Activity $7$

Jim again. $In20x5$ the benefit formula was changed $so$ that $at$ the end $of$ each year during retirement Jim will

receive $4\%of$ his final salary for each year $of$ service.

The PBO $at\frac{12}{31}\frac{?}{x4}$ using the old formula was

The PBO $at\frac{12}{31}\frac{?}{?}4$ using the new formula $is$

The additional $PSCis$

Make the journal entry $to$ record the additional $PSC$

OTHER COMPREHENSIVE INCOME $-PSC$

PENSION ASSE$\frac{T}{L}$IABILITY

The unamortized $PSC$ now totals?

The service cost component for $205is$

The interest component for $205is$

The return component for $205is$

Amortization $ofPSC$ for $205is$

Pension Expense for $205$ isMake the journal entry $to$ record pension expense for $20X5.$ For simplicity, assume the amount

funded each year $is$ $$12,000.$

PENSION EXPENSE

PENSION ASSE$\frac{T}{L}$IABILITY

CASH

$12,000$

OTHER COMPREHENSIVE INCOME $-PSC$

ACC $302-$ Pensions $-$ Class Activity $7$

Complete the exercise $at$ home and turn $in$ next class period for a grade

Please show how you get your answers. Unsupported answers will $be$ marked wrong.

The PBO $at\frac{12}{31}\frac{?}{x5}is$

The fund balance $at\frac{12}{31}\frac{?}{x5}is$

The funded status $at\frac{12}{31}\frac{?}{?}5is$

$$

The Accumulated OCI$-PSC$ balance $on$ the books $is$

$

$(Indicate$ where $itis$ and whether the balance $is$ a debit $or$ credit$)$

Show the $T$ account

The Pension asse$\frac{t}{l}$iability balance $on$ the books $is$

$(Indicate$ where $itis$ and whether the balance $is$ a debit $or$ credit$)$

Show the $T$ accountWhat amount $(s)$ will appear $on$ the balance sheet?