Student Notes, Pensions(17)

Unre c o g nize d ne t g ain o r lo s s balanc e abo

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unre c o g nize d ne t g ain o r lo s s  balanc e  abo ve  the  10%   m us t be  am o rtize d o ve r the  ave rag e  re m aining  s e rvic e   life  o f all ac tive  e m plo ye e s .   Gains/ Losses Gains/ Losses Gains/ Losses Gains/ Losses
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Chapter 20-22 Hunt C o rpo ratio n had a pro je c te d be ne fit o blig atio n o f  $3,100,000 and plan as s e ts  o f $3,300,000 at January 1,  2008.  Hunt’s  unre c o g nize d ne t pe ns io n lo s s  was  $475,000  at that tim e . The  ave rag e  re m aining  s e rvic e  pe rio d o f  Hunt’s  e m plo ye e s  is  7.5 ye ars .  Instructions Instructions C o m pute  Hunt’s  am o rtizatio n o f the  pe ns io n lo s s . Example of gain or loss amortization Example of gain or loss amortization Example of gain or loss amortization Example of gain or loss amortization
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Chapter 20-23 C o m pute  Hunt’s  am o rtizatio n o f the  lo s s . Example of gain or loss amortization Example of gain or loss amortization Example of gain or loss amortization Example of gain or loss amortization ÷
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Chapter 20-24 Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Katie Day Company adopts acceptable accounting for its defined benefit pension plan on  January 1, 2011, with the following beginning balances: plan assets $200,000; projected  benefit obligation $200,000.  Other data are as follows. 2011 2012 2013 Annual service cost 16, 000 $ 19, 000 $ 26, 000 $ Settlement rate and expected rate of return 10% 10% 10% Actual return on plan assets 17, 000 21, 900 24, 000 Annual f unding (contributions) 16, 000 40, 000 48, 000 Benef its paid 14, 000 16, 400 21, 000 Unrecognized prior service cost (plan amended, 1/ 1/ 12) 160, 000 Amortization of unrecognized prior service cost 54, 400 41, 600 Change in actuarial assumptions, Dec. 31 PBO 520, 000 Average remaining service lif e 15 years 15 years 15 years
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Chapter 20-25 GENERAL JOURNAL ENTRI ES MEMO RECORD Pension Project ed Pension Asset / Benef it Plan I t ems Expense Cash PSC Gain/ Loss Liabilit y Obligat ion Asset s Bal. Jan. 1, 2011 Service cost I nt erest cost Act ual ret urn Unexpect ed loss Cont ribut ions Benef it s paid Journal ent ry Accumulat ed OCI , Dec. 31, 2010 Dec. 31, 2011 OCI Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Pension Work Sheet for  2011
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Chapter 20-26 Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Pension Journal Entry for  2011
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Chapter 20-27 GENERAL JOURNAL ENTRI ES MEMO RECORD Pension Project ed Pension Asset / Benef it Plan I t ems Expense Cash PSC Gain/ Loss Liabilit y Obligat ion Asset s Bal. Jan. 1, 2012 Addit ional PSC, 1/ 1/ 2012 Bal. Jan. 1, 2012 Service cost I nt erest cost Act ual ret urn Amort . of PSC Cont ribut ions Benef it s paid Journal ent ry Accumulat ed OCI , Dec. 31, 2011 Dec. 31, 2012 OCI Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Pension Work Sheet for  2012
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Chapter 20-28 Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Pension Journal Entry for  2012
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Chapter 20-29
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