Question

Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Melanie Vail Corp. describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per CSU-Global Guide to Writing and APA and have proper citations, if applicable. Melanie Vail Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 625,000 Accumulated OCI (PSC) 100,000 Dr. Accumulated OCI (Gain/Loss) 85,000 Cr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary: Service cost for 2017 $90,000 Settlement rate 9% Actual return on plan assets in 2017 57,000 Expected return on plan assets 10% Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,000 Contributions in 2017 99,000 Benefits paid retirees in 2017 85,000 Avg. remaining service life (all employees) 12 years Click the link below to download an Excel workbook containing the spreadsheets you will need for this exercise. Use the spreadsheet Pensions to prepare a pension worksheet. On the pension worksheet, compute pension expense, pension asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss. Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2017. Indicate the reporting of the 2017 pension amounts in the income statement and balance sheet using the spreadsheet Pensions. What is the amount of deferred pension gain or loss that the company will carry forward to 2018? Compute the same items as in (#1), assuming that the expected rate of return is 14% and the Accumulated OCI (Gain/Loss) is a Debit balance at January 1, 2017.

Templet:

General Journal Entries

Memo Record

Annual

Projected

Pension

OCI—Prior

OCI—

Pension

Benefit

Items

Expense

Cash

Service Cost

Gain/Loss

Asset/Liability

Obligation

Plan assets

Balance, Jan. 1, 2015

Service cost

Interest cost

Actual Return

Expected Return

Amortization of PSC

Contributions

Benefits

Liability increase

Journal entry for 2015

Accumulated OCI, Dec. 31, 2014

Balance, Dec. 31, 2015

Prepare the journal entries to record the following. Date Account Title Amount Amount Account Title Provide a one line explanation for the reason why the journal entry has been made. Date Account Title Amount Amount Account Title Provide a one line explanation for the reason why the journal entry has been made. Date Account Title Amount Amount Account Title Provide a one line explanation for the reason why the journal entry has been made. Date Account Title Amount Amount Account Title Provide a one line explanation for the reason why the journal entry has been made. Date Account Title Amount Amount Account Title Provide a one line explanation for the reason why the journal entry has been made. Date Account Title Amount Amount Account Title Provide a one line explanation for the reason why the journal entry has been made.

Answer 1