Practice Problem One OCACC Corporation has a defined pension plan and received the following reports from their pension trust for 2017: Pension Plan Obligations Beginning balance Interest Cost on obligation Current Service Cost Benefit payments FV of Obligation Dec 31 $13,675,000 820,500 556,700 (134,800) 14,917,400 Required: Pension Plan Assets Beginning balance Actual income on plan assets Contributions Benefit payments FV of Plan Assets Dec 31 OCACC's company records showed: I OCACC's average employee will receive payments 20 years in the future and the yield on 20-year bonds is 6%. Contributions and benefits were paid at the end of the year. $8,010,000 157,900 1,030,000 (134,800) 9,063,100 1. What is the position of the Pension Plan at 2016 year end? 2. Prepare a pension spreadsheet (a template has been provided on the next page) to determine the values for the 2017 journal entries. 3. Prepare the journal entries for 2017 5. 4. Illustrate that your journal entries resulted in the Dec 31, 2017 fair value being on the balance sheet. Has the position of the pension plan improved? What happened during the year that contributed to the current position?

Practice Problem One OCACC Corporation has a defined pension plan and received the following reports from their pension trust for 2017: OCACC's company records showed: - OCACC's average employee will receive payments 20 years in the future and the yield on 20 -year bonds is \6. - Contributions and benefits were paid at the end of the year. Required: 1. What is the position of the Pension Plan at 2016 year end? 2. Prepare a pension spreadsheet (a template has been provided on the next page) to determine the values for the 2017 journal entries. 3. Prepare the journal entries for 2017 4. Illustrate that your journal entries resulted in the Dec 31, 2017 fair value being on the balance sheet. 5. Has the position of the pension plan improved? What happened during the year that contributed to the current position