ACC 306 Week 3 Problem 17-16

P 1716 Lakeside Cable - Comprehensive reporting a pension plan; pension spreadsheet; determine changes in balances; two years ? LO3 through LO8

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2011:

Required:

1.Determine Lakesides pension expense for 2011 and prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets and payment of benefits to retirees.

2.Determine the new gains and/or losses in 2011 and prepare the appropriate journal entry(s) to record them.

3.Prepare a pension spreadsheet to assist you in determining end of 2011 balances in the PBO, plan assets, prior service costAOCI, the net lossAOCI, and the pension liability.

4.Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2012: Determine Lakesides pension expense for 2012 and prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees.

5.Determine the new gains and/or losses in 2012 and prepare the appropriate journal entry(s) to record them.

6.Using T-accounts, determine the balances at December 31, 2012, in the net lossAOCI and prior service costAOCI.

7.Confirm the balances determined in Requirement 6 by preparing a pension spreadsheet.