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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)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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)
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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