Question

Exercise 17-15 Pension spreadsheet [LO17-8] 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 2016, the pension formula was amended. creating a prior service cost of $280.000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter credit amounts with a minus sign and deblt amounts with a positive slgn.) Prior Plan Service Assets Cost - AOCI 780 S 208 [ Net Loss - AOCI 104 Pension Expense Net Pension (Liability) Asset S (260) PBO S (1.040) S Cash 124 (62.40) ($ in 000s) Balance, Jan. 1. 2018 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization: Prior service cost Amortization: Net loss Gain on PBO Prior service cost Cash funding Retiree benefits Balance, Dec. 31, 2018 (108) S (1,138) S 252

Answer 1

Answer-

			Prior				Net Pension
		Plan	Service	Net loss	Pension		(Liablity)
($ in 000s)	PBO	Assets	Cost-AOCI	-AOCI	Expense	Cash	/Asset
Balance, Jan 1,2018	$(1,040)	$780	$266	$104			$(260)
Service Cost	(124)				124		(124)
Interest Cost 5%	(52)				52		(52)
Expected ROA		62.40			(62.40)		(62.40)
Adjust for:
Loss on Assets		(26)		26			(26)
Amortization:
Prior Service Cost			(14)		14
Amortization:
Net Loss
Gain on PBO	28			(28)			28
Prior Service Cost
Cash Funding		108				(108)	108
Retiree Benefits	50	(50)
Balance, Dec 31,2018	$(1,138)	$874.4	252	$102	$127.60	$(108)	$(388.4)