A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2019, the pension formula was amended, creating a prior service cost of $220,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) 8 Answer is complete but not entirely correct. Net Pension Prior Net Plan Service Pension (Liability) Loss ($ in thousands) Cost - AOCI - AOCI I Asset PBO Assets Expense Cash $ (580.0) (118.0) 8 Balance, Jan. 1, 2021 $ 520.0 2$ 209.0 $ 58.0 $ 0.0 O$ 0.0 O $ (60.0) Service cost 0.0 O 0.0 O 0.0 O 98.0 0.0 V (118.0) 8 Interest cost, 5% (29.0) 0.0 O 0.0 O 0.0 O 49.0 X 0.0 O (49.0) X Expected return on assets 0.0 O 57.6 X 0.0 O 0.0 O (41.6) 0.0 O 58.0 X Adjust for: Loss on assets 0.0 O (23.0) 8 0.0 O 13.0 0.0 O 0.0 O (23.0) 8 Amortization: Prior service cost 0.0 O 0.0 O (11.0) O 0.0 O 11.0 O 0.0 O 0.0 O Amortization: Net loss 0.0 O 0.0 O 0.0 O 0.0 O 0.0 O 0.0 O 0.0 O Gain on PBO 22.0 O 0.0 O 0.0 O (22.0) O 0.0 O 0.0 O 22.0 Prior service cost 0.0 O 0.0 O 0.0 0.0 O 0.0 O 0.0 O 0.0 O Cash funding 0.0 O 102.0 X 0.0 O 0.0 O 0.0 O (82.0) 102.0 X Retiree benefits 50.0 O (50.0) O 0.0 O 0.0 O 0.0 O 0.0 O 0.0 Balance, Dec. 31, 2021 $ (635.0) $ 606.6 $ 198.0 $ 49.0 116.4 (68.0)
A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2019, the pension formula was amended, creating a prior service cost of $220,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) 8 Answer is complete but not entirely correct. Net Pension Prior Net Plan Service Pension (Liability) Loss ($ in thousands) Cost - AOCI - AOCI I Asset PBO Assets Expense Cash $ (580.0) (118.0) 8 Balance, Jan. 1, 2021 $ 520.0 2$ 209.0 $ 58.0 $ 0.0 O$ 0.0 O $ (60.0) Service cost 0.0 O 0.0 O 0.0 O 98.0 0.0 V (118.0) 8 Interest cost, 5% (29.0) 0.0 O 0.0 O 0.0 O 49.0 X 0.0 O (49.0) X Expected return on assets 0.0 O 57.6 X 0.0 O 0.0 O (41.6) 0.0 O 58.0 X Adjust for: Loss on assets 0.0 O (23.0) 8 0.0 O 13.0 0.0 O 0.0 O (23.0) 8 Amortization: Prior service cost 0.0 O 0.0 O (11.0) O 0.0 O 11.0 O 0.0 O 0.0 O Amortization: Net loss 0.0 O 0.0 O 0.0 O 0.0 O 0.0 O 0.0 O 0.0 O Gain on PBO 22.0 O 0.0 O 0.0 O (22.0) O 0.0 O 0.0 O 22.0 Prior service cost 0.0 O 0.0 O 0.0 0.0 O 0.0 O 0.0 O 0.0 O Cash funding 0.0 O 102.0 X 0.0 O 0.0 O 0.0 O (82.0) 102.0 X Retiree benefits 50.0 O (50.0) O 0.0 O 0.0 O 0.0 O 0.0 O 0.0 Balance, Dec. 31, 2021 $ (635.0) $ 606.6 $ 198.0 $ 49.0 116.4 (68.0)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 1E
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Transcribed Image Text:A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension
plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2019, the pension formula was amended,
creating a prior service cost of $220,000. The expected rate of return on assets was 8%, and the average remaining service life of the
active employee group is 20 years in the current year as well as the previous two years.
Required:
Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.)
Answer is complete but not entirely correct.
Net
Pension
Prior
Net
Plan
Service
Pension
(Liability)
Loss
($ in thousands)
Cost -
AOCI
I Asset
PBO
Assets
- AOCI
Expense
Cash
Balance, Jan. 1, 2021
$ (580.0)
$ 520.0
$ 209.0
$
58.0
0.0 O $
0.0 O $
(60.0)
Service cost
(118.0) 8
0.0 O
0.0
0.0
98.0
0.0 V
(118.0) X
Interest cost, 5%
(29.0)
0.0 O
0.0 V
0.0
49.0 X
0.0 O
(49.0) X
Expected return on assets
0.0 O
57.6 X
0.0 V
0.0 O
(41.6)
0.0
58.0 X
Adjust for:
Loss on assets
0.0 O
(23.0) X
0.0 O
13.0
0.0 O
0.0 V
(23.0) X
Amortization:
Prior service cost
0.0 O
0.0 O
(11.0) O
0.0
11.0
0.0
0.0
Amortization:
Net loss
0.0 V
0.0 O
0.0 V
0.0 O
0.0 O
0.0 O
0.0
Gain on PBO
22.0 V
0.0 O
0.0 O
(22.0) O
0.0
0.0 O
22.0
Prior service cost
0.0 O
0.0 O
0.0 O
0.0 V
0.0
0.0 O
0.0
Cash funding
0.0 O
102.0 X
0.0 O
0.0 O
0.0 O
(82.0)
102.0 X
Retiree benefits
50.0 V
(50.0) O
0.0 O
0.0
0.0 O
0.0 O
0.0
Balance, Dec. 31, 2021
$ (635.0)
$ 606.6
198.0
49.0
116.4
(68.0)
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