Given the following pension reconciliation from the financial statement notes of Company P at December 31,...

 

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Given the following pension reconciliation from the financial statement notes of Company P at December 31, 2016: Projected benefit obligation Fair value of plan assets $ 330,000 270,000 Also, the following amounts are reported in Other Comprehensive Income in the 2016 Statement of Stockholders' Equity: Unamortized prior service cost Unrecognized net loss 90,000 debit 39,000 debit Additional information for 2017: 1. Service costs for 2017 were calculated to be $45,000. 2. The settlement rate (for interest cost) on the PBO was 7%. 3. The expected return on the plan assets was 8%. 4. During 2017, Company P contributed $65,000 to the plan. The prior service costs are being amortized over the remaining years of service of 5 5. years. 6. The average remaining service life for amortizing unrecognized gains and losses (after application of the corridor) is 10 years. 7. The pension plan paid benefits to retirees totaling $44,000 during 2017. 8. The actuary calculated the following balances at the end of 2017: ES 363,800 321,000 PBO FVPA From the information above, complete on the answer sheet: (1) the Pension Schedules, (2) the journal entry for 2017, and (3) the T-accounts. Include proper titles for each of the missing items in the pension schedules. Abbreviations are acceptable, both here, and on the exam. Given the following pension reconciliation from the financial statement notes of Company P at December 31, 2016: Projected benefit obligation Fair value of plan assets $ 330,000 270,000 Also, the following amounts are reported in Other Comprehensive Income in the 2016 Statement of Stockholders' Equity: Unamortized prior service cost Unrecognized net loss 90,000 debit 39,000 debit Additional information for 2017: 1. Service costs for 2017 were calculated to be $45,000. 2. The settlement rate (for interest cost) on the PBO was 7%. 3. The expected return on the plan assets was 8%. 4. During 2017, Company P contributed $65,000 to the plan. The prior service costs are being amortized over the remaining years of service of 5 5. years. 6. The average remaining service life for amortizing unrecognized gains and losses (after application of the corridor) is 10 years. 7. The pension plan paid benefits to retirees totaling $44,000 during 2017. 8. The actuary calculated the following balances at the end of 2017: ES 363,800 321,000 PBO FVPA From the information above, complete on the answer sheet: (1) the Pension Schedules, (2) the journal entry for 2017, and (3) the T-accounts. Include proper titles for each of the missing items in the pension schedules. Abbreviations are acceptable, both here, and on the exam.

Answer rating: 100% (QA)

Answer Solution Amortization of net gain or lossAOCI using Corridor approach Pension Work Sheet Nega... View the full answer