Calculations for the Entire Employee Pool

Example #$2$: Comprehensive Example for Employee Pool

Interest $($Cost$)$ Rate

Expected rate of return on plan assets

Actual rate of return on plan assets

COMPONENTS OF THE PBO:

Projected benefit obligation at the beginning of $2017$

Service cost, $2017$

Loss $($gain$)$ on PBO for the current year

CY G$/$L on PBO from changes in assumptions

Less: Benefits paid to retirees during the year

$\backslash$table$[[$$$,4,200,390$

$11.$ Calculate the interest cost and record the journal entry.

$12.$ Calculate the expected return on plan assets and record the journal entry.

$13.$ Calculate the actual return on plan assets.

$14.$ Calculate the adjustment for gain

or loss and record the journal entry.

$15.$ Calculate the amortization of PSC$.$

$16.$ Calculate the amortization of the net gain or loss $($if required$)$ and record the journal entry.

$17.$ Lost on assumption changes has what impact or regular net income? Increase, decrease, or no impact.