Lakeside Cable – Comprehensive? reporting a pension plan; pension spreadsheet; determine changes in balances; two years?

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P 17–16 – Lakeside Cable – Comprehensive— reporting a pension plan; pension spreadsheet; determine changes in balances; two years 

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

Required:

1. Determine Lakeside’s 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 cost—AOCI, the net loss—AOCI, 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 Lakeside’s 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 loss–AOCI and prior service cost–AOCI. 

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