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 2019, the pension formula was amended, creating a prior service cost of $160,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) Prior Net Pension Plan Service Net Loss Pension (Liability) ($ in thousands) PBO Assets Cost – AOCI – AOCI Expense Cash / Asset Balance, Jan. 1, 2021 $(920.0) $660.0 $152.0 $92.0 $(260.0) Service cost 112.0 Interest cost, 5% (46.0) Expected return on assets (52.8) Adjust for: Loss on assets 20.0 Amortization: Prior service cost Amortization: Net loss Gain on PBO 16.0 Prior service cost Cash funding (96.0) Retiree benefits Balance, Dec. 31, 2021 $(1,012.0) $144.0

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 1E

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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 2019, the pension formula was amended, creating a prior service cost of $160,000. 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 your answers in thousands rounded to 1 decimal place.)

			Prior				Net Pension
		Plan	Service	Net Loss	Pension		(Liability)
($ in thousands)	PBO	Assets	Cost – AOCI	– AOCI	Expense	Cash	/ Asset
Balance, Jan. 1, 2021	$(920.0)	$660.0	$152.0	$92.0			$(260.0)
Service cost					112.0
Interest cost, 5%	(46.0)
Expected return on assets					(52.8)
Adjust for:
Loss on assets				20.0
Amortization:
Prior service cost
Amortization:
Net loss
Gain on PBO							16.0
Prior service cost
Cash funding						(96.0)
Retiree benefits
Balance, Dec. 31, 2021	$(1,012.0)		$144.0

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