ACCT 6230 Week 8 (2)

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Week8ExcelTemplates.xls
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Instructions

Instructions for the Microsoft Excel Templates
Be advised, the worksheet and workbooks are not protected.
Extensive detail and information is contained within the manual.
Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant and bring up one of several help menus.
You should enter your name, course ID, and date name into the cells at the top of the page.
Each page contains a page footer with a Page # of Page ## as well as time and date to assist in assembly of multiple pages.
Each worksheet contains the identification of the problem or exercise.
All formatting should have been accomplished to provide satisfactory presentation. See the text for additional assistance in formatting.
There should be no need to insert columns or rows into the workbooks.
If more than one page is required by the problem, the page breaks are preset.
In general, the yellow highlighted cells are the cells which work and effort should be presented.
Place the proper account title in the cell where the word "Account title" appears on the template.
Place the value in the cell where the word "Value" or "Amount" appears on the template. A formula may be placed in some of these cells.
Write a formula into cells where the word "Formula" appears. In these cells, an amount calculated can be entered. An amount can be placed in these cells.
Place the explanation for the entry in the cell where the word "Text Explanation" appears on the template.
Insert the account number where "Acct Nbr" appears on the template during posting.
Insert the journal reference where "JOURN #" appears on the template during posting.
Insert the title in the cell where "TITLE" appears on the template.
The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required.
The gray filled cells define the perimeter of the problem and the print area.
The problem is formatted for whole dollars with comma separations (no cents) except where required.
The display may have "Freeze Pane" invoked so column titles remain visible during data entry.
Negative values may be shown as ($400) or -$400.
Consider using "Split" panes to assist in copy and paste of data.
Much of the exercises and problems can have data entered by the "look to" or "=A34" type formula where cell A34 contains the data to be entered. This precludes typing and data entry errors.
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Exercise 20-1

Name:
Exercise: E20-1, Pension Expense, Journal Entries
Course:
Date:
The following information is available for the pension plan of Brady Company for the year 2010.
Actual and expected rate of return on plan assets $15,000
Benefits paid to retirees 40,000
Contributions (funding) 90,000
Interest/discount rate 10%
Prior service cost amortization 8,000
Projected benefit obligation, January 1, 2010 500,000
Service cost 60,000
Instructions:
(a) Compute pension expense for the year 2010.
Computation of pension expense:
Text Title Amount
Text Title Amount
Text Title Amount
Text Title Amount
Text Title Formula
(b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2010.
Account Title Amount
Account Title Amount
Account Title Amount
Account Title Amount
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Exercise 20-7

Name:
Exercise: E20-7, Basic Pension Work Sheet
Course:
Date:
The following defined pension data of Rydell Corp. apply to the year 2010.
Projected benefit obligation, 1/1/10 (before amendment) $560,000
Plan assets, 1/1/10 546,200
Pension liability 13,800
On January 1, 2010, Rydell Corp., through plan amendment, grants prior service benefits having a present value of 120,000
Settlement rate 9%
Service cost 58,000
Contributions (funding) 65,000
Actual (expected) return on plan assets 52,280
Benefits paid to retirees 40,000
Prior service cost amortization for 2010 17,000
Instructions:
For 2010, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.
RYDELL CORP.
Pension Work Sheet—2010
General Journal Entries Memo Record
Items Annual Pension Expense Cash OCI - Prior Service Cost Pension Asset/ Liability Projected Benefit Obligation Plan Assets
Balance, January 1, 2009 Formula Formula Formula
(a) Prior service cost Formula Formula
New balance, January 1, 2010 Formula Formula
(b) Service cost Formula Formula
(c) Interest cost Formula Formula
(d) Actual return Formula Formula
(e) Amortization of PSC Formula Formula
(f) Contributions Formula Formula
(g) Benefits Formula Formula
Journal entry, December 31 Formula Formula Formula Formula
Accumulated OCI, December 31, 2009 Amount
Balance, December 31, 2010 Formula Formula Formula Formula
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Problem 20-1

Name:
Problem: P20-1, Two-Year Work Sheet and Reconciliation Schedule
Course:
Date:
On January 1, 2010, Cunningham Company has the following definedbenefit pension plan balances.
Projected benefits obligation $4,500,000
Fair value of plan assets 4,200,000
The interest (settlement) rate applicable to the plan is 10% On January 1, 2011, the company amends its pension agreement
so that service costs of $500,000 are created. Other data related to the pension plan are as follows:
2010 2011
Service costs $150,000 $180,000
Prior service costs amortization 0 90,000
Contributions (funding) to the plan 240,000 285,000
Benefits paid 200,000 280,000
Actual return on plan assets 252,000 260,000
Expected rate of return on assets 6% 8%
Instructions:
(a) Prepare a pension work sheet for the pension plan for 2010 and 2011.
CUNNINGHAM COMPANY
Pension Work Sheet—2010 and 2011
General Journal Entries Memo Record
Items Annual Pension Expense Cash OCI - Prior Service Cost OCI - Gain/Loss Pension Asset/ Liability Projected Benefit Obligation Plan Assets
Balance, Jan. 1, 2010 Amount Amount Amount
(a) Service cost Amount Amount
(b) Interest cost Amount Amount
(c) Actual return Amount Amount
(d) Contributions Amount Amount
(e) Benefits Amount Amount
Journal entry, 12/31/10 Formula Amount 0 0 Formula
Accum OCI, 12/31/09
Balance, Dec. 31, 2010 Formula Formula Formula
(f) Additional PSC Amount Amount
January 1, 2011 Formula
(g) Service cost Amount Amount
(h) Interest cost Formula Formula
(i) Actual return Amount Amount
(j) Unexpected loss Formula Amount
(k) Amortization of PSC Amount Amount
(l) Contributions Amount Amount
(m) Benefits Amount Amount
Journal entry, 12/31/11 Formula Formula Formula Formula Formula
Accum OCI, 12/31/10 Amount Amount
Balance, Dec. 31, 2011 Formula Formula Formula Formula Formula
Area for calculations as desired
Area for calculations as desired
Area for calculations as desired
(b) For 2011, prepare the journal entry to record pension-related amounts.
Account title Amount
Account title Amount
Account title Amount
Account title Amount
Account title Amount

Problem 20-4

Name:
Problem: P20-4 – Pension Expense, Journal Entries for Two Years
Course:
Date:
Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011.
2010 2011
Plan assets (fair value), December 31 $699,000 $849,000
Projected benefit obligation, January 1 700,000 800,000
Pension asset/liability, January 1 (140,000) ?
Prior service cost, January 1 250,000 240,000
Service cost 60,000 90,000
Actual and expected return on plan assets 24,000 30,000
Amortization of prior service cost 10,000 12,000
Contributions (funding) 115,000 120,000
Accumulated benefit obligation, December 31 500,000 550,000
Interest/settlement rate 9% 9%
Instructions:
(a) Compute pension expense for 2010 and 2011.
Computation of pension expense:
2010 2011
Service cost Amount Amount
Interest cost Formula Amount
Expected return on plan assets Amount Amount
Amortization of prior service cost Amount Amount
Pension expense Formula Formula
(b) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years.
2010 2011
Pension Asset/Liability Amount
Pension Expense Amount
Other Comprehensive Income (PSC) Amount
Other Comprehensive Income (G&L) Amount
Cash Amount
Pension Expense Amount
Cash Amount
Pension Asset/Liability Amount
Other Comprehensive Income (PSC) Amount
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