I need a worksheet related to the benefit pension plan offered by AAA Inc. for its employees as well as issue the journal entries to reflect all pension plan transactions and events in a year.

 

Ms. Blue apparently wasn't up on pension accounting because the plan file contains only the following note: Remember to tell boss that I need help with accounting for these things! C.B. It takes a couple of days to assemble the information you need, but you finally get it all together and summarize it as follows:

Pension Plan

 

2009

2010

Projected Benefit Obligation

65,000

 

Plan Assets (fair value), January 1

41,000

 

Pension asset/liability January 1 (credit)

24,000

 

Prior service cost, January 1

16,000

 

Service cost

4,000

5,900

Settlement rate

10%

10%

Expected rate of return

10%

10%

Actual return on plan assets

3,600

6,100

Amortization of prior service cost

7,000

5,500

Annual contributions

7,200

8,100

Benefits paid to retirees

3,150

5,400

Increase in pension benefit obligations due to actuarial assumptions

8,700

0

Accumulated benefit obligations at December 31

72,180

78,900

Average service life of all employees

 

20 years

Vested benefit obligation—December 31

 

46,400

Use the information provided

• Need a pension worksheet using Microsoft Excel for both years 2009 and 2010 and the necessary computations and amortization of the loss (2010), using the corridor approach.
• Prepare in the same worksheet the journal entries to reflect all pension plan transactions and events at December 31 of each year.
• For 2010, indicate (in the same worksheet) the pension amounts to be reported in the financial statements.
• in 1 paragraph, explain alternative measures for valuing the pension obligation. What would you advise for AAA?

SuperTutor

(15)

Status NEW Posted 11 Jul 2017 07:07 AM My Price 8.00

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