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P20-2 Allison Co. has the following postretirement benefit plan balances on January 1, 2012. ...

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Accounting

P20-2 Allison Co. has the following postretirement benefit plan balances on January 1, 2012.
Accumulated Postretirement benefit obligation $2,535,000
Fair value of plan assets 2,535,000
The interest (settlement) rate applicable to the plan is 8% On January 1, 2013, the company amends the plan
so that prior service costs of $185,000 were created. Other data related to the pension plan are as follows:
2012 2013
Service costs $80,000 $87,000
Prior service costs amortization 0 13,000
Contributions (funding) to the plan 47,000 38,000
Benefits paid 41,000 43,000
Actual return on plan assets 200,000 155,000
Expected rate of return on assets 9% 7%
Instructions:
(a) Prepare a worksheet for the postretirement plan for 2012 and 2013.
Allison Co.
Pension Worksheet2012 and 2013
General Journal Entries Memo Record
Items Annual Expense DR/CR Cash DR/CR OCI - Prior Service Cost DR/CR OCI - Gain/Loss DR/CR Pension Asset/ Liability DR/CR Accum Projected Benefit Obligation DR/CR Plan Assets DR/CR
Balance, Jan. 1, 2012
Service cost
Interest cost
Actual return
Unexpected loss
Contributions
Benefits
Journal entry, 12/31/12
Accum OCI, 12/31/11
Balance, Dec. 31, 2012
Additional PSC 1/1/2013
Balance, Jan 1, 2013
Service cost
Interest cost
Actual return
Unexpected loss
Amortization of PSC
Contributions
Benefits
Journal entry, 12/31/13
Accum OCI, 12/31/12
Balance, Dec. 31, 2013
Area for calculations as desired
Area for calculations as desired
Area for calculations as desired
(b) Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2012.
(c) Prepare any journal entries related to the postretirement plan as of December 31, 2013.
(d) Show the postretirement-benefitrelated amounts reported in the 2013 Income Statement and Balance Sheet.
Financial Statements-2013
Income Statement
0
Comprehensive Income Statement
Net Income XXXXX
Other comprehensive income (loss)
0
0
0 0
Comprehensive Income XXXXX
Balance Sheet
Liabilities
0
Stockholder's Equity
0
0

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