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Exp Return On Plan Assets Actual Return On Plan Assets: The Funded Status of The Plan Is: Underfunded
Exp Return On Plan Assets Actual Return On Plan Assets: The Funded Status of The Plan Is: Underfunded
on Plan Assets Informal Records 8% ($ in 000s) Balance, Jan. 1, 2007 Service Cost Interest Cost Expected return on assets Adjust for: (Loss) or Gain on assets Amortization of: Prior service cost Net loss or gain Gain (Loss) on PBO Prior service cost Cash funding Retiree benefits Balance, Dec. 31, 2007 237 (1,941) 300 (237) 1,575 (50) PBO Plan Assets (1,845) 1,400 (135) (148)
98
14
14 Retiree Benefits Paid = $ 237 Service cost $ 135 8% Avg Remaining Service Period (Yrs) = 13 7% Expected future pay levels to go up & impact plan by $ 50 * Formal Records * OCI-Prior Pension * Service OCI - Net (Liability)/ * Cost Loss (Gain) Pension Expense Cash Asset * 220 210 (445) * * 135 (135) * * 148 (148) * * (98) 98 * * * (14) 14 * * (17) 17 * * * (14) 14 * * 50 (50) * * * * * * * (300) 300 0 (366)
Pension expense Plan assets Amortization of net loss - OCI Amortization of prior service cost - OCI PBO (to record pension expense) Plan assets OCI - Net Gain (to record net gain on assets) Loss - OCI PBO (to record loss on PBO) Plan assets Cash (to record cash contribution to plan assets) PBO Plan assets (to record retiree benefits) THE FUNDED STATUS OF THE PLAN IS:
216 98 14 17 283
14 14
(50) (50)
300 300
237 237
UNDERFUNDED
203
232
216
(300)
Complete the spreadsheet, using good cell referencing so I can change your assumptions and get a new, good spreadsheet. Show all entries needed for the year. Report the funded status of the plan at year-end in good form. You must use at least one "if/then" statement in Excel (if you're really adventurous, you could use a "double if/then")