Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2015. You need to prepare journal entries for only #1 above.
Discuss the different ethical aspects of each of the five to seven concepts you selected as they relate to your individual leadership style.
August 4, 2017Do Marion’s actions comply with the requirements of IAS 16/AASB 116?
August 4, 2017Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2015. You need to prepare journal entries for only #1 above.
Melanie Vail Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2015, the following balances relate to this plan.
| Plan assets |
$480,000 |
| Projected benefit obligation |
625,000 |
| Accumulated OCI (PSC) |
100,000 |
As a result of the operation of the plan during 2015, the following additional data are provided by the actuary.
| Service cost for 2015 |
$90,000 |
| Settlement rate |
9% |
| Actual return on plan assets in 2015 |
57,000 |
| 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 in 2015 |
99,000 |
| Benefits paid retirees in 2015 |
85,000 |
Download the Excel Template linked at the bottom of this page, containing the spreadsheets you will need for this exercise.
- Use the spreadsheet Pensions 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.
- Compute the same items as in (#1), assuming that the settlement rate is now 7% and the expected rate of return is 10%.
- Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2015. You need to prepare journal entries for only #1 above.
- Indicate the reporting of the 2015 pension amounts in the income statement and balance sheet using the spreadsheet Pensions. You need to show financial statements’ presentations for only #1 above.
