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

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Jim is an employee of cardinal corp. in $20$X$3,$ after $13$ years if faithful service, cardinal initiated a defined benefit pension plan for Jim. According to the plans benefit formula, at the end of each year during retirement, Jim will receive $3\%$ of the salary that he earned during his final year, of employment for each year of service. The actuary estimates that Jim will retire in $5$ years, after which he should live another $4$ years. Jims salary for $20$X$2$ was $$29,000.$ For $20$X$3$ it is $$30,000.$ Cardinal estimates that Jim will receive an annual raise of $$1,000$ each year until retirement.

$$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.

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$10.$ The PBO at $12/31/$x$5$ is$$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$11.$ The fund balance at $12/31/$x$5$ is$$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$12.$ The funded status at $12/31/$x$5$ is$$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$.$

$13.$ The Accumulated OCI$-$ PSC balance on the books is$$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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

$$ Show the T account

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$14.$ The Pension asset$/$liability balance on the books is$$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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

$$ Show the T account

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$4.$ What amount $($s$)$ will appear on the balance sheet?

Assets

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Liabilities

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Deferred Tax Asset

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Pension Liability

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Owners Equity

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Accumulated Other Comprehensive Income

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