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Given the following pension reconciliation from the financial statement notes of Company P at December 31, 2016:

Projected benefit obligation $ 330,000

Fair value of plan assets 270,000

Also, the following amounts are reported in Other Comprehensive Income in the 2016 Statement of Stockholders Equity:

Unamortized prior service cost 90,000 debit

Unrecognized net loss 39,000 debit

Additional information for 2017:

1.Service costs for 2017 were calculated to be $45,000.

2.The settlement rate (for interest cost) on the PBO was 7%.

3.The expected return on the plan assets was 8%.

4. During 2017, Company P contributed $125,000 to the plan.

5. The prior service costs are being amortized over the remaining years of service of 5 years.

6. The average remaining service life for amortizing unrecognized gains and losses (after application of the corridor) is 10 years.

7. The pension plan paid benefits to retirees totaling $44,000 during 2017.

8. The actuary calculated the following balances at the end of 2017:

PBO = $ 363,800

FVPA = 370,000

From the information above, complete on the answer sheet: (1) the Pension Schedules, (2) the journal entry for 2017, and (3) the T-accounts. Include proper titles for each of the missing items in the pension schedules. Abbreviations are acceptable, both here, and on the exam.

III. Comprehensive Pension Problem Answer Format

Pension Expense Components:

__________________ ___________

__________________ ___________

__________________ ___________

__________________ ___________

__________________ ___________

Pension Expense ___________

PBO FVPA

Beginning ___________ Beginning ___________

_____________ ___________ ______________ ___________

_____________ ___________ ______________ ___________

_____________ ___________ ______________ ___________

=End. Unadjusted ___________ =Ending Unadjusted ___________

______________ ___________ _______________ ___________

= Ending Reported ___________ =Ending Reported ___________

Journal Entry:

Ending Balances:

Pension Asset Liab OCI- U PSC OCI-U Net G/L <----- Tchart needed

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