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  3. 1. xyz company sponsors a defined benefit pension

1. XYZ Company sponsors a defined benefit pension plan for its employees. On 1/1/17, the...

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Accounting

1. XYZ Company sponsors a defined benefit pension plan for its employees. On 1/1/17, the following balances relate to this plan:

Plan assets

480,000

Projected Benefit Obligation

600,000

Penson asset/liability

120,000

Accumulated Other Comprehensive Income (AOCI) - Prior Service Costs

100,000

Debit Bal.

As a result of the operation of the Plan during 2017, the following additional data was provided by the actuary:

Service cost

90,000

Settlement rate

9%

Actual return on plan assets

55,000

Amortization of prior service cost

19,000

Expected return on plan assets

52,000

Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions

76,000

Contributions

99,000

Benefits paid to retirees

85,000

Prepare a pension worksheet with the following columns headers:

Annual Pension Expense

Cash

Prior Service Cost (PSC) an OCI item

Gain/Loss an OCI item

Pension Asset/Liability

Memo Record Projected Benefit Obligation

Memo Record Plan Assets at Fair Value

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