Prob 1 AR 2,000

Less: Int. Income 1,300

Remeasurement Gain 700

Ben. Exp Cash OCI Acc. BC PBO FVPA

1/1 Balances - 2,500 - 15,500 13,000
Current Service Cost 3,000 - 3,000
Past Service Cost 900 - 900
Interest Exp. (15.5M x 10%) 1,550 - 1,550
Actual Return - 2,000 2,000
Asset Remeasurement Gain 700 -700
Contribution to the plan -6,500 6,500
Benefits Paid 5,000 - 5,000
Decrease in PBO - Liab. Gain 100 - 100
Journal Entry DR. (CR.) 4,150 -6,500 -600 2,950
12/31 Balances 450 - 16,050 16,500

BE 4,150
RG - 600
Net DBC 3,550

Prob 2 AR 600
Less: Int. Income (8M x 10%) 800
Remeasurement Loss on Plan Assets - 200

Settlement Price 1,000

Less: PV of Benefit Obligation Settled 800
Settlement LOSS 200

Ben. Exp Cash OCI PREP BC PBO FVPA

1/1 Balances 1,000 - 7,000 8,000
Current Service Cost 1,400 - 1,400
Past Service Cost 500 - 500
Interest Exp. (7M x 10%) 700 - 700
Actual Return - 600 600
Asset Remeasurement loss - 200 200
Contribution to the plan -1,200 1,200
Benefits Paid 1,500 - 1,500
SP / PV of BOS / Settlment loSS 200 800 - 1,000
DECrease in PBO - Liab. GAIN -300 300
Journal Entry DR. (CR.) 2,000 -1,200 -100 - 700
12/31 Balances 300 - 7,000 7,300

BE 2,000
RG - 100
 Net DBC 1,900

Prob 3 AR 900
Less: Int. Income (6M x 10%) 600
Remeasurement Gain on Plan Assets 300

Effect of Asset Ceiling 12/31 800

Less: Effect of Asset Ceiling 1/1 300
Increase 500
Less: Interest on Beginning Effect (10% x 300k 30
Net Remeasurement Loss on Increase 470

Ben. Exp Cash OCI PREP.BC Effect of AC PBO FVPA

1/1 Balances 700 - 300 - 5,000 6,000
Current Service Cost 700 - 700
Past Service Cost 200 - 200
Interest Exp. (5M x 10%) 500 - 500
Actual Return - 900 900
Asset Remeasurement Gain 300 -300
Contribution to the plan -1,000 1,000
Increase in effect of Asset Ceiling 500 - 500
Interest on Beginning Effect (abov 30 - 30
Decrease in PBO - Liab. Gain -500 500
Journal Entry DR. (CR.) 830 -1,000 -330 500
12/31 Balances 1,200 - 800 - 5,900 7,900

BE 830
RG - 330
Net DBC 500