| 1) | XYZ Company had three defined benefit plans with the following information: | | | | | | 12 Points |
| | | | | Plan 1 | Plan 2 | Plan 3 |
| | Expected Payment over next year | | | 3,500,000 | 3,500,000 | 3,500,000 |
| | Fair Value of Plan Assets | | | 5,000,000 | 6,000,000 | 3,000,000 |
| | Projected Benefit Obligation | | | 7,000,000 | 5,500,000 | 4,500,000 |
| | Record the over/(under) funded status of each plan. Then determine the balance sheet presentation based on the over/(under) funded status. (Input an amount in each yellow cell. If zero, input zero.) |
| | | | | Plan 1 | Plan 2 | Plan 3 |
| | Over/ (Under) Funded Status |
| | Noncurrent Asset |
| | Current Liability** |
| | Noncurrent Liability |
| | ** Think about the expected payment over the next year compared to the Plan Assets available. |
| 2) | XYZ Company received the following information from its actuary team for the | | | | | | 10 points |
| | year pertaining to one of its defined benefit plans: |
| | Service Cost | | | | | 120,000 |
| | Interest on Projected Benefit Obligation | | | | | 55,000 |
| | Expected Return on Plan Assets | | | | | 30,000 |
| | Amortization of Prior Service Cost | | | | | 15,000 |
| | Amortization of Actuarial Gain | | | | | 10,000 |
| | Calculate the Pension Expense for the year (show all items included in the calculation): |
| 3) | At the end of year, XYZ Corporation had the following pension related information in addition to the above information: | | | | | | 12 points |
| | | | | | 12/31/X1 | 12/31/X2 |
| | Fair Value of Plan Assets | | | | 405,000 | 505,000 |
| | Projected Benefit Obligation | | | | 1,065,000 | 1,035,000 |
| | Funded Status | | | | (660,000) | (530,000) |
| | Record the Necessary Journal Entries: |
| | Entry to record Service Cost, Interest Cost and Return on Plan Assets: |
| | Account Name: | | | | Debit | Credit |
| | Amortization of Prior Service Cost and/or Actuarial Losses: |
| | Account Name: | | | | Debit | Credit |
| | Amortization of Actuarial Gains: |
| | Account Name: | | | | Debit | Credit |
| 4) | a) Identify a US Company that offers a Defined Benefit Plan and review the 10K information for 2016 of the identified company and provide a brief analysis based on footnotes related to the plan. | | | | | | 3 points |
| | b) Include screenshots to report the Funded Status and Pension Expense information for the selected plan. | | | | | | 1 Points |
| | c) Record the associated journal entries based on the screenshots for that company. | | | | | | 12 points |
| | Entry to record Service Cost, Interest Cost and Return on Plan Assets: |
| | Account Name: | | | | Debit | Credit |
| | Amortization of Prior Service Cost and/or Actuarial Losses: |
| | Account Name: | | | | Debit | Credit |
| | Amortization of Actuarial Gains: |
| | Account Name: | | | | Debit | Credit |
COURTMCLARKE777
week_7_hw.xlsx
