Professional Simulation In this simulation you are aske

Professional Simulation In this simulation you are asked to address questions regarding accounting for pensions. Prepare responses to all parts. Melanie Vail Corp. sponsors a defined benefit pension plan for its employees. On January 1 2012 the following balances relate to this plan. Plan assets $480000 Projected benefit obligation 625000 Accumulated OCI (PSC) 100000 Dr. As a result of the operation of the plan during 2012 the following additional data are provided by the actuary. Service cost for 2012 $90000 Settlement rate 9% Actual return on plan assets in 2012 57000 Amortization of prior service cost 19000 Expected return on plan assets 52000 Unexpected loss from change in projected benefit obligation due to change in actuarial predictions 76000 Contributions in 2012 99000 Benefits paid retirees in 2012 85000 Directions Situation Measurement Journal Entry Disclosure Resources Directions Situation Measurement Journal Entry Disclosure Resources Directions Situation Measurement Journal Entry Disclosure Resources Directions Situation Measurement Journal Entry Disclosure Resources (a) Use a computer spreadsheet to prepare a pension worksheet. On the pension worksheet compute pension expense pension asset/liability projected benefit obligation plan assets prior service cost and net gain or loss. (b) Compute the same items as in (a) assuming that the settlement rate is now 7% and the expected rate of return is 10%. Prepare the journal entry to record pension expense in 2012. Indicate the reporting of the 2012 pension amounts in this income statement and balance sheet. 12345 A B C + KWW_Professional_Simulation Accounting for Pensions Time Remaining 2 hours 20 minutes Unsplit Split Horiz Split Vertical Spreadsheet Calculator Exit
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